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Full text of "Investigations of Senators Joseph R. McCarthy and William Benton pursuant to S. res. 187 and S. res. 304; report of the Subcommittee on Privileges and Elections to the Committee on Rules and Administration. Washington, U. S. Govt. Print. Off., 1952"

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INVESTIGATIONS  OF  SENATORS 
JOSEPH  R.  McCarthy 

AND 

WILLIAM  BENTON 

PURSUANT  TO 

S.  Res.  187  and  S.  Res.  304 


REPORT 

OF  THE 

SUBCOMMITTEE  ON  PRIVILEGES  AND  ELECTIONS 

TO  THE 

COMMITTEE  ON  RULES  AND  ADMINISTRATION 


>-J: 


W-i. 


UNITED   STATES 

GOVERNMENT  PRINTING  OFFICE 

WASHINGTON   :   1952 


SUBCOMMITTEE  ON  PRIVILEGES  AND  ELECTIONS  OF  THE  COMMITTEE 
ON  RULES  AND  ADMINISTRATION 

THOMAS  C.  HENNINGS,  JR.,  Missouri,  Chairman 
CARL  HAYDEN,  Arizona  ROBERT  C.  HENDRICKSON,  New  Jersey 

Grace  E.  Johnson,  Chief  Clerk 
Paul  J.  Cotter,  Chief  Counsel 
Stanley  T.  Fisher,  Chief  Investigator 
S.  Harvey  FoSNer,  Associate  Counsel 
ALLEN  J.  Goodman,  Assistant  Counsel 
William  J.  Miller,  Accountant 
Francis  X.  Plant,  Investigator 
Robert  L.  Shortley,  Investigator 


CONTENTS 


Pag« 

Introduction nYn 

Why  tlie  Subcommittee  did  not  subpoena  Senator  McCarthy »-lU 

The  reason  for  the  long  delay  in  the  investigation  and  report 11-12 

Reasons  for  treating  with  S.  Kes.  1S7  and  S.  lies.  304  in  the  same 

report ^^' 

Part  I— Kesults  of  Investigation  Pursuant  to  S.  Res.  187 : 

Scope  of  investigation 12 

Press  releases  of  two  former  Subcommittee  staff  members 14-15 

Whether  under  the  circumstances  it  was  proper  for  Senator  McCarthy 

to  receive  $10,000  from  the  Lustron  Corporation 15-19 

Whether  funds  supplied  to  Senator  McCarthy  to  fight  communism  or 

for  other  speciiic  purposes  were  diverted  to  his  own  use 19--27 

The  Bentley-Van  Straten  transaction 19-23 

Senator  McCarthy's  special  account 2a-27 

Whether  Senator  McCarthy  used  close  associates  and  members  of  his 
family  to  secrete  receipts,  income,  conmiodity  and  stock  speculation 

and  other  financial  transactions  for  ulterior  motives 27-3S 

Senator  Mc(\irtliy's  1044  primary  campaign  for  the  Senate 27 -2& 

William  P.  McCarthy's  transactions 29-32 

The  Appleton  St:ite  I'.ank  transactions 32-38 

Appietoii  State  Bank  interest  transactions 3(5-37 

Senator  McCarthy's  and  Kay  Kiermas'  bank  accounts 37-38 

Whether  Senator  McCarthy's  activities  on  behalf  of  certain  special 
interest  groups,  such  as  housing,  sugar,  and  China  were  motivated 

by  self  interest 38—10 

Housing 38 

Sugar 3S-39 

China 39-40 

Whether  loan  or  other  transactions  Senator  McCarthy  had  with  Apple- 
ton  State  Bank  or  others  involved  violations  of  the  tax  and  bank- 
ing  laws 40-43 

Whether  Senator  McCarthy  violated  Federal  and  State  Corrupt  Prac- 
tice Acts  in  connection  with  his  1944-46  senatorial  campaigns  or  in 

connection  with  his  dealings  with  Ray  Kiermas 43-45 

1944    campaign 43 

1940  senatorial  campaign 43-45- 

Conclusion  and  reconimi'udations 45- 

Part  II— Results  of  Investigation  Pursuant  to  S.  Res.  304  : 

Walter  Cosgriff's  testinionv  before  the  Fulbright  committee   (March 

1951) 46-47 

Benton's  testimony  before  S<'nate  Subcommittee  (September  1951) 47 

Benton's  testimony  before  Senate  Subconnnittee  (July  1952) 47-48 

Statement  of  Walter  Cosgriff  (November  11,  1952) 48-50 

Testimony  of  Senator  Benton  on  November  24,  1952 50-51 

Conclusions  and  recommendations 52 

(m) 


ADDENDUM 

to  Subcommittee  Report  on  S.  R.  187  and  S.  R.  304 

The  foregoing  report  is  based  substantially  upon  testimony 
and  exhibits  which  were  presented  before  the  Subcommittee 
on  Privileges  and  Elections.  However,  because  of  a  lack  of 
continuity  in  the  Committee  membership  and  delays  beyond 
the  control  of  the  present  membership  of  the  Committee, 
its  preparation  has  given  us  great  concern  as  a  number 
of  its  aspects  have  become  moot  by  reason  of  the  1952  elec- 
tion. Such  facts  therein  as  were  known  to  the  people  of 
the  States  particularly  affected  have  been  passed  upon  by 
the  people  themselves  in  the  election.  Thus,  as  we  pass  our 
studies  on  to  our  colleagues  of  the  incoming  session,  we  want 
the  Senate  of  the  United  States  to  understand  that  the  Com- 
mittee's efforts  have  been  harassed  by  a  lack  of  adequate 
time  and  lack  of  continuity  in  the  Committee  membership. 

There  will  be  forthcoming  in  the  next  few  days  a  Committee 
report  embodying  suggestions  on  remedial  legislation  affect- 
ing election  laws  and  procedures. 


INVESTIGATION  OF  SENATORS  JOSEPH  R.  McCARTHY 
AND  WILLIAM  BENTON 


Mr.  Hennings,  from  the  Subcommittee  on  Privileges  and  Elections 
of  the  Senate  Committee  on  Rules  and  Administration,  submitted  the 
following 

REPORT 

[Pursuant  to  S.  Res.  187  and  S.  Res.  304] 

INTRODUCTION 

On  August  6,  1951,  S.  Res.  187  was  introduced  in  the  Senate  by 
Senator  William  Benton  of  Connecticut.  This  resolution  called  for  an 
investigation  to  determine  whether  expulsion  proceedings  should  be 
instituted  against  Senator  Joseph  R.  McCarthy.  The  resolution 
pointed  out  certain  findings  in  a  report  which  had  been  filed  under 
date  of  August  3,  1951,  by  the  Senate  Subcommittee  on  Privileges  and 
Elections,  relating  to  Senator  McCarthy's  activities  in  the  1950  Mary- 
land senatorial  election  and  suggested  further  investigation  of  these 
activities  as  well  as  other  acts  of  Senator  McCarthy  since  his  election 
to  the  Senate.    (See  Resolution,  Appendix,  Exhibit  1.) 

The  resolution  was  referred  by  the  President  of  the  Senate  to  the 
Senate  Committee  on  Rules  and  Administration  and,  in  turn,  to  its 
Subcommittee  on  Privileges  and  Elections  for  proper  action.  Because 
of  what  followed,  it  is  believed  highly  appropriate  to  explain  briefly 
why  this  action  was  taken. 

By  historical  precedent,  prior  to  the  Reorganization  Act  of  1946, 
among  other  things,  matters  relating  to  expulsion,  exclusion  or  censure 
of  a  Senator  were  referred  to  a  permanent  committee  of  the  Senate 
called  "The  Committee  on  Privileges  and  Elections."  The  ex- 
pulsion of  a  Senator  involves  the  dismissal  for  cause  of  a  Senator  who 
has  already  been  seated  and  requires  a  two-thirds  vote  of  the  Senate. 
The  exclusion  of  a  Senator  involves  the  refusal  of  the  Senate  to  seat 
a  Senator  elected  by  his  state,  and  can  be  effected  by  a  majority  vote. 
Article  I,  section  5,  of  the  Constitution  provides  that  "Each  House 
(of  the  Congress)  shall  be  the  judge  of  the  elections,  returns  and  quali- 
fications of  its  members". 

The  Reorganization  Act  of  1946,  which  greatly  reduced  the  number 
of  standing  committees  of  the  Senate,  abolished  the  old  Committee  on 
Privileges  and  Elections  and  transferred  its  functions  to  the  Senate 
Connnittee  on  Rules  and  Administration.  In  practice,  these  functions 
have  since  been  carried  out  by  its  Subcommittee  on  Privileges  and 
Elections. 

The  records  of  the  old  standing  Committee  on  Privileges  and  Elec- 
tions during  the  course  of  its  history  from  1871  to  1947,  reflect  that  it 

(1) 


had  taken  jurisdiction  over  eight  expulsion  and  exclusion  cases  and 
three  censure  cases,  which  were  predicated  upon  grounds  other  than 
matters  relating  to  elections.  These  cases  involved  issues  ranging  from 
allegations  of  selling  influence  to  the  making  of  a  disloyal  speech. 
Additional  reference  to  this  Subconnnittee's  jurisdiction  over  such 
matters  will  be  made  later  in  the  report. 

The  Subcommittee  on  Privileges  and  Elections,  in  proceeding  with 
a  preliminary  investigation  to  determine  the  merits  of  S.  Res.  187, 
on  September  28,  1951,  received  testimon^^  in  open  hearing;  from  Sen- 
ator Benton  in  support  of  said  resolution.  Prior  to  this,  however, 
and  under  date  of  September  17,  1951,  Senator  jMcCarthy  wrote  Sen- 
ator Gillette,  Chairman  of  the  Subcommittee,  that  the  hearings  were 
designed  to  expel  him  "for  having  exposed  Communisis  in  Govern- 
ment*', and  demanded  the  right  to  cross-examine  witnesses  at  the 
hearing.  The  Subcommittee  decided  that  cross-examination  of  wit- 
nesses would  be  confined  to  members  of  the  Subcommittee  and,  by 
letter  of  September  25,  1951,  Chairman  Gillette  advised  Senator 
McCarthy  of  this  and  invited  him  to  attend  the  hearing  of  Septem- 
ber 28  and  make  a  statement,  if  he  so  desired.  (Copies  of  Senator 
IVIcCarthy's  letter  and  Senator  Gillette's  reply  are  attached  as  Exhibits 
2  and  3.) 

Senator  McCarthy  did  not  attend  the  September  28  hearing.  By 
letter  dated  October  1,  1951,  Chairman  Gillette  again  invited  Senator 
McCarthy  to  appear  before  the  Subcommittee  to  reply  to  Senator 
Benton's  charges  (Exhibit  4). 

Senator  McCarthy  replied  by  letter  of  October  4,  1951,  rejecting 
the  invitation  and  terming  the  Benton  charges  a  Communist  smear. 
Thereafter  Senator  McCarthy  conducted  a  bitter  attack  upon  the 
integrity  of  the  Subcommittee  and  its  jurisdiction  to  investigate  a 
Senator  on  matters  other  than  those  growing  out  of  elections.  What 
transpired  is  best  summarized  in  a  letter  dated  March  6,  1952.  from 
Senator  Gillette,  as  Chairman  of  the  Subcommittee,  to  Senator  Carl 
Hayden,  Chairman  of  the  parent  Committee  on  Rules  and  Adminis- 
tration, in  which  it  was  indicated  that  the  Subcommittee  after  decid- 
ing that  it  was  difficult  enough  to  perform  its  duty  without  being 
attacked  in  the  manner  Senator  McCarthy  employed,  requested  that 
the  Senate  itself  pass  upon  the  jurisdiction  of  the  Subcommittee 
and  the  integrity  of  its  individual  members,  or  discharge  it  from  the 
responsibility  delegated  to  it.  Senator  Gillette's  letter,  which  is  being 
made  a  part  of  this  report,  is  set  forth  as  follows : 

March  6,  1952. 
Re:   S.  Res.  187. 

My  Dear  Senator  Hayden  :  On  August  6. 1951  Senate  Resolution  1S7  was  intro- 
duced in  the  Senate  by  Senator  William  r.enton  of  Connecticut  and  was  re- 
ferred by  the  President  of  the  Senate  to  the  Conimitteo  on  Rules  and  Admin- 
istration. As  you  know,  the  resolution  proposes  an  Inquiry  to  detennine  whether 
the  Connnittee  on  Rules  and  Administration  should  initiate  action  with  a  view 
toward  the  expulsion  from  the  United  States  Senate  of  Senator  .Joseph  R.  Mc- 
Carthy of  Wisconsin.    The  final  clause  of  the  resolution  is  as  follows : 

"Rcr.olvrd,  That  the  Committee  on  Rules  and  Administration  of  the  Senate  is 
authorized  and  directed  to  proceed  with  such  consideration  of  the  report  of  its 
Subcommittee  on  Privileges  and  Elections  with  respect  to  the  IPnO  Maryland 
senatorial  general  election,  which  was  made  pursuant  to  S.  Res.  2.50,  Eighty-first 
Congress,  April  13,  1950,  and  to  make  such  further  investigation  with  respect 
to  the  participation  of  Senator  Joseph  R.  McCarthy  in  the  1950  senatorial  cam- 
paign of  Senator  .John  Marshall  Butler,  and  such  investigation  with  respect  to 
his  other  acts  since  his  election  to  the  Senate,  as  may  be  appropriate  to  enable 


such  conimlttoe  to  dotormine  whether  or  not  it  should  Initiate  action  with  a  view 
toward  the  expulsion  from  the  United  States  Senate  of  the  said  Senator  Joseph 
R.  McCarthy." 

On  Auj^ust  8,  1951,  as  Chairman  of  the  Committee  on  Rules  and  Administra- 
tion, you  referred  the  said  resolution  to  the  Subconnnittee  on  Privileges  and 
Elections  and  on  Friday,  September  28,  the  Subconnnittee  received  in  op<'n 
session  an  oral  statenn^nt  from  Senator  Uenton  in  support  of  the  resolution.  An 
Invitation  was  extended  to  Senator  McCarthy  to  attend  this  public  bearing  and 
to  appear  before  the  Subcommittee  to  answer  Senator  Benton's  charges.  However, 
Senator  McCarthy  rejected  this  invitation  by  letter  dated  October  4, 1951,  in  which 
he  stated : 

"Frankly  Ouy,  I  have  not  and  do  not  intend  to  er(^  read,  inueh  less  answer, 
Benton's  smear  attaek.  I  am  sure  you  realize  tlwt  the  Benton  type  of  material 
can  be  found  in  the  Daily  Worker  almost  any  day  of  the  iveek  and  icill  continue 
to  floir  from  the  mouths  and  pens  of  the  camp-folloicers  as  long  as  I  continue  m,y 
fight  against  Communists  in  government." 

( A  copy  of  Senator  McCarthy's  communication  is  attached  hereto  as  enclosure 
"A").     (Exhibit  5.) 

Thereafter,  the  staff  of  the  Subcommittee  was  ordered  to  investigate  the 
matters  involved.  On  December  6,  1951,  without  prior  inquiry  either  to  me  or 
to  any  other  meml>er  of  the  Subconnnittee,  Senator  McCarthy  falsely  and,  it 
must  be  said,  maliciously,  accused  the  committee  of  "stealing  from  the  pockets 
of  the  American  taxpayer  tens  of  thousands  of  dollars"  in  its  handling  of  this 
investigation.  The  scandalous  nature  of  his  charges  is  apparent  from  the  follow- 
ing quotation  of  tliem : 

".  ,  .  over  the  past  months,  it  has  been  repeatedly  brought  to  my  attention 
that  a  horde  of  investigators  hired  by  your  committee  at  a  cost  of  tens  of 
thousands  of  dollars  of  taxpayer's  money,  h<is  been  engaged  erclusively  in  trying 
to  dig  tip  on  McCarthy  material  covering  periods  of  time  long  before  he  was 
even  old  enough  to  be  a  candidate  for  the  Senate — material  which  can  have  no 
conceivable  connection  with  his  election  or  any  other  election.  This  is  being  done 
in  complete  disregard  of  the  limited  power  of  your  elections  subcommittee.  The 
obiHous  purpose  is  to  dig  up  campaign  material  for  the  Democrat  Party  for  the 
coming  campaign  against  McCarthy. 

"When  your  elections  subcommittee,  ivithout  Senate  authorization,  spends  tens 
of  thousands  of  taxpayers'  dollars  for  the  sole  purpose  of  digging  up  campaign 
material  against  McCarthy,  then  the  committee  is  guilty  of  stealing  just  as 
clearly  as  though  the  members  engaged  in  picking  the  pockets  of  the  taxpayers 
and  turning  the  loot  over  to  the  Democrat  National  Committee. 

"If  one  of  the  Administration  lackies  loere  chairman  of  this  committee,  I  would 
not  waste  the  time  or  energy  to  write  and  point  out  the  committee's  complete 
dishonesty,  but  from,  you,  Ouy,  the  Senate  and  the  country  expect  honest  ad- 
herence to  the  rules  of  the  Senate.     .  .  . 

"While  the  actions  of  Benton  and  some  of  the  committee  rnonbers  do  not  sur- 
prise me.  I  cannot  undirstnnd  your  being  willing  to  label  Guy  Gillette  as  a  man 
who  will  head  a  committee  which  is  stealing  from  the  pockets  of  the  American 
taxpayer  tc7is  of  thousands  of  dollars  and  then  using  this  money  to  protect 
the  Democrat  Party  from  the  political  effect  of  the  exposure  of  Communists  in 
government.  To  take  it  upon  yourself  to  hire  a  horde  of  investigators  and  spend 
tens  of  thousands  of  dollars  <without  any  authorization  to  do  so  from  the  Senate 
is  labeling  your  elections  subcommittee  as  even  more  dishonest  than  iras  the 
Tydings  Committee." 

(A  copy  of  this  communication  and  of  my  reply,  also  dated  December  G,  1951 
are  attached  hereto  as  enclosure  "B").     (Exhibits  6  and  7.) 

The  following  day,  December  7,  1951,  Senator  McCarthy  addressed  to  me  a 
further  communication  requesting  information  concerning  the  p(>rsonnel  of  the 
staff  of  the  Subcommittee,  their  salaries,  and  an  explanation  of  the  nature  of 
instructions  issued  to  them.  Since  Senator  McCarthy  was  at  that  time  a  member 
of  the  Itules  Committee,  I  felt  that  he  was  entitled  to  the  inl'oiination  he  had 
requested  relative  to  the  personnel  employed  by  the  Subcommittee  and  by  letter 
dated  December  11,  in."il,  related  information  to  him  concerning  their  f^alaries 
and  the  length  of  time  they  had  been  employed.  (A  copy  of  this  communication 
and  of  my  reply  dated  December  11,  1951,  are  attached  hereto  as  enclosure 
"C").     (Exhibits  8  and  9.) 

Again,  Mr.  Chairman,  on  December  19,  1951,  after  having  received  from  me 
the  complete  details  with  respect  to  the  personnel  of  th(>  Subcommittee  and  the 
salaries  at  which  they  are  employed.  Senator  McCarthy  deliberately,  knowing  the 


change  to  be  false,  again  vilified  the  Snbcoramittee  on  Privileges  and  Elections 
with  the  same  extravaf?ant  and  irresponsible  charges,  attributing  dishonesty  and 
improper  motives  to  its  members.     In  this  letter  Senator  McCarthy  stated  : 

".  .  .  The  full  Committee  appointed  you  Chairman  of  an  FAections  Subcom- 
mittee, but  gave  you  no  power  whatsoever  to  hire  investigators  and  spend  vast 
amounts  of  money  to  make  investigations  having  nothing  to  do  with  elections. 
Again  may  I  have  an  answer  to  my  questions  as  to  why  you  feel  you  are  entitled 
to  spend  the  taxpayers'  money  to  do  the  work  of  the  Democratic  National 
Committee. 

"As  I  have  previously  stated,  you  and  every  member  of  your  Subcommittee  who 
is  responsible  for  spending  vast  amounts  of  money  to  hire  investigators,  pay  their 
traveling  expenses,  etc.,  on  matters  not  concerned  with  elections,  is  just  as  dis- 
honest as  though  he  or  she  picked  the  pockets  of  the  taxpayers  and  turned  the  loot 
over  to  the  Detnocrat  National  Committee.  .  .  ." 

All  of  the  above  intemperate  and  outrageous  accusations  were  delivered  to  the 
public  press  prior  to  their  submission  to  me,  as  I  pointed  out  in  a  communication 
to  Senator  McCarthy  dated  December  21, 1951 : 

",  .  .  Unfortunately,  our  previous  correspondence  concerning  these  matters 
found  its  way  into  the  public  press  and  your  letters  to  me  were  printed  in  full  in 
the  public  press  even  before  I  received  them.  As  a  former  judge  you  will  appreci- 
ate, I  am  sure,  the  impropriety  of  discussing  matters  pertaining  to  pending  litiga- 
tion in  the  public  press.  The  Senate  Committee  on  Rules  and  Administration  hav- 
ing referred  the  Benton  Resolution  to  our  Subcommittee,  has  placed  us  in  a  quasi- 
judicial  position  relative  to  a  matter  of  outstanding  importance  involving  the 
expulsion  from  the  Senate  of  a  sitting  member." 

In  this  communication  I  also  extended  to  Senator  McCarthy  an  opportunity  to 
confer  with  me  in  person  rather  than  continue  this  exchange  of  correspondence. 
With  respect  to  his  unwarranted,  undignified  and  wholy  unjustifiable  attack  upon 
the  integrity  of  the  Subcommittee,  I  said : 

".  .  .  may  I  again  assure  you  that  as  far  as  I  am  personally  concerned,  neither 
the  Democratic  National  Committee,  nor  any  other  person  or  group  other  than  an 
agency  of  the  United  States  Senate  has  had  or  icill  have  any  influence  whatever  as 
to  my  duties  and  actions  as  a  member  of  the  Subcommittee  and  I  am  just  as 
confident  that  no  other  member  of  the  Subcommittee  has  been  or  will  be  so 
influenced." 

(A  copy  of  Senator  McCarthy's  letter  of  December  19,  1951  and  of  my  answer, 
which  I  transmitted  to  Senator  McCarthy  on  December  21,  1951,  are  attached 
hereto  as  enclosure  "D" ) .     ( Exhibits  10  and  11. ) 

The  invitation  contained  in  my  letter  of  December  21,  1951  was,  however, 
ignored  by  Senator  McCarthy  and  again  on  January  4,  1952  he  addressed  to  me 
a  communication  charging  that  the  jurisdiction  of  the  Subcommittee  was  re- 
stricted to  matters  having  to  do  with  elections  and  asking  whether  the  investi- 
gators were  ordered  to  restrict  their  investigations  to  such  matters.  (A  copy  of 
this  communication  and  of  my  reply  dated  January  10,  1952  are  attached  hereto 
as  enclosure  "E".)     (Exhibits  12  and  12A.) 

No  valid  argument  can  be  made  that  the  Subcommittee  does  not  possess  juris- 
diction to  enter  into  a  plenary  investigation  of  Senator  McCarthy's  qualifica- 
tions and  conduct.  The  matter  has  been  the  subject  of  careful  research  by  the 
legal  staff  of  the  Subcommittee  and  it  is  clear  that  Senator  McCarthy's  charge 
that  our  jurisdiction  is  limited  to  matters  pertaining  to  elections  is  wholly 
untenable. 

However,  because  of  the  fact  that  a  question  of  jurisdiction  has  been  raised 
by  Senator  McCarthy  and  because  he  has  undertaken,  in  addition,  to  impugn  the 
integrity  of  the  members  of  the  Subcommittee  in  communications  which  have 
been  widely  publicized  by  him,  the  Subcommittee,  in  an  executive  session  held  on 
March  5,  1952,  adopted  the  following  motion  by  Senator  Monroney  of  Oklahoma : 

"That  the  Chairman  of  the  Committee  on  Rules  and  Administration  request 
Senator  McCarthy  of  Wisconsin  to  raise  the  question  of  the  jurisdiction  of  the 
Subcommittee  on  Privileges  and  Elections  and  of  the  integrity  of  the  members 
thereof  in  connection  with  its  consideration  of  S.  Res.  187  by  making  a  formal 
motion  on  the  floor  of  the  Senate  to  discharge  the  Committee;  and  that  Senator 
McCarthy  be  advised  by  the  Chairman  of  the  Committee  on  Rules  and  Adminis- 
tration that  if  he  does  not  take  the  requested  action  in  a  period  of  time  to  be 
fixed  by  stipulation  between  Senator  McCarthy  and  the  Chairman  of  the  Com- 
mittee on  Rules  and  Administration,  that  the  Committee  (acting  through  the 
Chairman  of  the  Standing  Committee  or  the  Chairman  of  the  Subcommittee) 
will  itself  present  such  motion  to  discharge  for  the  purpose  of  affirming  the  juris- 


diction  of  the  Siiboonimittop  and  the  integrity  of  its  members  in  its  consideration 
of  the  aforesaid  Uesolution." 

As  Cliairmaii  of  tlie  Subcommittee,  I  transmit  tliis  report  to  you  and  request 
that  you  brini;  tlie  matter  before  the  Committee  on  Ilules  and  Administration  at 
its  next  meeting. 

Respectfully, 

Guy  M.  Gir.i-ETTE,  Chairman. 

This  motion  was  adopted  by  the  Senate  Conirnittec  on  Rules  and 
Administration  and  Senator  ]\IeCarthy  was  offered  an  opportiniit}^  to 
present  such  a  resolution.  He  indicated  liis  refusal  by  letter  dated 
March  21, 1952,  in  which  he  stated  that  as  the  Subcommittee  had  spent 
"tens  of  thousands  of  dollars"  and  nearly  a  year,  making  an  investiga- 
tion of  him,  its  task  was  not  linished  until  it  rei)orted  to  the  Senate  the 
results  of  such  investigation.  He  further  stated  that  the  preliminary 
report  wliich  the  stalF  had  written  was  scurrilous,  cleverly  twisted  and 
distorted  and  then  leaked  to  the  left-wing  element  of  the  press  in  an 
effort  to  further  smear  "McCarthy".  He  stated  that  a  vote  of  confidence 
in  the  Subcommittee  would  be  a  vote  on  whether  or  not  it  had  the  right, 
without  authority  from  the  Senate — but  merely  on  the  request  of  one 
Senator,  to  make  a  thorough  and  complete  investigation  of  the  entire 
life  of  another  Senator,  and  that  a  vote  against  the  Subcommittee 
could  not  undo  the  harm  which  had  already  been  done  "in  regard  to 
McCarthy"  (Exhibit  13). 

On  April  8,  1952,  Senator  Hayden,  Chairman  of  tlie  Committee  on 
Kules  and  Administration,  introduced  on  the  floor  of  the  Senate,  S. 
Res.  300  (Exhibit  14),  which  incorporated  the  Subcommittee's  motion 
and  pointed  out  the  issue  involved  with  respect  to  Senator  McCarthy's 
charge  that  the  Subcommittee  on  Privileges  and  Elections  lacked  juris- 
diction to  investigate  such  acts  of  a  Senator  as  were  not  coimected  with 
an  election  campaign,  and  his  attack  upon  the  honesty  and  motives  of 
the  members  of  the  Subcommittee.  This  resolution  asked  that  the 
Committee  on  Rules  and  Administration  be  discharged  from  the  fur- 
ther consideration  of  S.  Res.  187.  Senator  Hayden  also  recjuested 
that  there  be  printed  in  the  Congressional  Record  certain  precedents 
of  the  Senate  relating  to  expulsion,  exclusion  and  censure  cases  un- 
connected with  elections  from  1871  to  1951.  These  were  ordered 
printed  and  are  attached  as  Exhibit  15.  There  was  also  ordered  to  be 
printed  in  the  Congressional  Record  of  that  date  Senator  (lillette's 
letter  of  March  6,  1952,  to  Senator  Hayden,  appearing  above  in  this 
report,  together  with  attachments,  and  Senator  McCarthy's  letter  to 
Senator  Hayden  of  March  21, 1952. 

On  April  10,  1952,  the  Senate  voted  on  Resolution  300,  and,  by  a 
unanimous  vote  of  GO-0,  upheld  the  jurisdiction  of  the  Senate  Sub- 
committee on  Privileges  and  Elections  to  continue  its  investigation  of 
Senator  McCarthy  and  confirmed  its  confidence  in  the  honesty  and 
integrity  of  the  members  of  the  Subcommittee.  Senator  McCarthy  did 
not  oppose  the  resolution. 

However,  on  April  10,  1952,  Senator  McCarthy  introduced  S.  Res. 
304  to  investigate  Senator  Benton  of  Connecticut  (Exhibit  IG).  This 
resolution  enumerated  certain  alleged  activities  of  Senator  Benton, 
including  acce])tance  of  campaign  funds  which  were  collected  by 
Walter  Cosgriff  for  Benton's  1950  senatorial  campaign  and  not  re- 
ported by  him  in  violation  of  Federal  and  State  laws.  The  resolution 
requested  the  Committee  on  Rules  and  Administration  of  the  United 
States  Senate  to  make  such  investigation  of  these  and  other  activities 


and  associations  of  Senator  Benton  as  the  Committee  deemed  necessary 
in  order  to  recommend  appropriate  action  to  the  Senate. 

As  a  result  of  a  decision  of  the  Privileges  and  Election  Subcom- 
mittee, reached  in  executive  session  on  May  7, 1952,  Senator  McCarthy 
was  invited  by  letter  of  same  date,  to  appear,  at  his  convenience,  at 
public  hearings  to  be  held  in  connection  with  S.  Res.  187,  particularly 
with  respect  to  allegations  made  by  Senator  Benton  that  Senator 
McCarthy  improperly  received  a  $10,000  fee  in  1948  from  the  Lustron 
Corporation  (Exhibit  17). 

By  letter  of  May  8,  1952,  Senator  McCarthy  replied,  giving  no 
indication  as  to  whether  he  would  accept  the  invitation,  but  setting 
forth  a  defense  of  his  receipt  of  the  Lustron  fee.  He  again  pointed 
out  that  this  "year-long  investigation  by  your  Subcommittee  would 
never  have  been  commenced  if  I  had  not  been  exposing  Communists 
in  Government",  and  indicated  that  the  Subcommittee  was  serving 
the  Communist  cause.  Senator  McCarthy  also  stated  in  this  letter, 
"If  you  have  evidence  of  wrong  doing  on  McCarthy's  part  which 
would  justify  removal  from  the  Senate  or  a  vote  of  censure  by  the 
Senate,  certainly  you  have  the  obligation  to  produce  it"  (Exhibit  18). 

In  another  letter  from  Senator  McCarthy  to  Senator  Gillette,  dated 
May  8,  1952,  Senator  McCarthy  charged  that  Benton's  resolution  to 
expel  him  from  the  Senate  came  about  because  of  his  fight  to  expose 
Communists  in  the  Democratic  Administration,  and  in  charging  that 
the  Subcommittee  was  stalling  on  the  Benton  matter,  stated :  "Before 
I  urged  the  Senate  to  vote  to  continue  the  life  of  your  Subcommittee, 
we  received  your  unqualified  promise  to  proceed  to  investigate  the 
Benton  case  just  as  expeditiously  as  the  attempted  expulsion  of  Mc- 
Carthy" (Exhibit  19). 

On  May  10,  1952,  Senator  Gillette  again  wrote  Senator  McCarthy, 
acknowledging  receipt  of  the  letter  of  May  8th  and  inviting  him  to 
appear  on  May  12th  before  the  Subcommittee  to  give  such  statements 
as  he  desired,  to  refute  charges  made  by  Senator  Benton,  etc.  (Ex- 
hibit 20).  On  May  11,  1952,  Senator  McCarthy  wrote  Senator  Gil- 
lette a  sardonic  letter  expressing  "deepest  sympathy"  that  the  "star 
witness"  for  the  Subcommittee  hearing  of  the  12th  was  in  an  insti- 
tution'<  for  the  criminally  insane.  He  again  drew  a  comparison 
between  the  activities  of  the  Subcommittee  in  "exposing  McCarthy" 
and  the  "Communist  Party  which  is  also  doing  an  excellent  job  in 
exposing  the  evils  of  McCarthyism".  He  advised  the  Subcommittee 
members  "not  to  be  disturbed  by  those  who  point  out  that  your  Com- 
mittee is  trying  to  do  what  the  Communist  Party  has  officially  pro- 
claimed as  its  No.  1  task."     (Exhibit  21.) 

On  May  13, 1952,  Senator  Gillette  wrote  Senator  McCarthy  pointing 
out  that  the  McCarthy  resolution  directed  at  Senator  Benton  had  not 
as  yet  been  referred  to  the  Subcommittee  (Exhibit  22).  By  letter  of 
May  28,  1952,  this  resolution  was  referred  to  the  Subcommittee  by 
the  Rules  and  Administration  Committee  (Exhibit  23). 

On  June  9, 1952,  Senator  Gillette  wrote  Senator  McCarthy  pointing 
out  that  Senator  McCarthy  had  advised  that  he  was  unable  to  present 
a  statement  before  the  Subcommittee  during  the  previous  week  and 
fixed  Thursday  of  the  current  week  to  present  any  additional  testimony 
he  desired  in  support  of  Senator  McCarthy's  resolution  concerning 
Senator  Benton.  The  letter  stated  that  the  same  rules  would  apply 
as  in  the  case  of  the  Benton  resolution  (Exhibit  24).     On  June  11, 


1952,  Senator  McCartliy  wrote  Senator  Gillette  that  he  would  not  be 
available  Thursday,  but  would  be  available  the  followino;  "Wednesday. 
Senator  McCarthy  ajz;ain  ur<!;ed  that  immediate  investi<ration  be  con- 
ducted of  Senator  Benton,  including  the  procurement  of  his  Federal 
Income  Tax  Returns  (Exhibit  25). 

On  June  12,  1952,  Senator  McCarthy  wrote  Senator  Gillette  tliat  it 
would  appear  that  he  would  be  unable  to  attend  on  the  date  scheduled 
that  week,  and  a<;ain  urged  the  staff  to  immediately  obtain  Benton's 
tax  returns,  etc.  (Exhibit  2(5). 

On  June  18,  1952,  Senator  Gillette  wrote  Senator  McCarthy,  setting 
another  date,  June  23,  for  Senator  McCarthy's  appearance  before  the 
Subcommittee  (Hxhibit  27).  On  June  19,  1952,  Senator  McCarthy 
wrote  Senator  Gillette  that  he  had  just  been  served  with  a  Court 
Order  in  the  case  of  McCarthy  v.  The  Syracuse  Post-Standard^  and 
would  not  be  able  to  appear  on  the  23rd  (Exhibit  28). 

On  June  20,  1952,  Senator  Gillette  wrote  Senator  McCarthy, 
acknowledging  receipt  of  his  letter  of  the  19th  and  advising  that  the 
Subcommittee  would  consult  his  convenience  as  to  fixing  another  date 
for  the  hearing  on  McCarthy's  resolution  pertaining  to  Senator  Benton 
(Exhibit  29).  Under  date  of  June  23,  1952,  Senator  Gillette  received 
a  letter  from  Senator  Benton  pointing  out  that  he  had  again  and 
again  made  himself  available  to  be  present  when  Senator  McCarthy 
presented  his  evidence  in  further  support  of  Resolution  3()-l,  and  that 
on  one  date  set  for  hearing,  when  Senator  McCarthy  said  he  would 
be  attending  a  State  convention  in  Wisconsin,  he  was  actually  on  the 
floor  of  the  Senate  (Exhibit  30).  On  June  23,  1952,  Senator  Gillette 
wrote  Senator  McCarthy  advising  that  the  Subcommittee  was  await- 
ing Senator  McCarthy's  statement  in  support  of  his  resolution  con- 
cerning Senator  Benton,  which  was  the  same  procedure  followed  by 
the  Subconunittee  in  its  consideration  of  S.  Res.  187  (Exhibit  31) .  On 
June  24, 1952.  Mary  B.  Driscoll,  secretarj^  to  Senator  McCarthy,  wrote 
Senator  Gillette  saying  that  Senator  McCarthy  had  advised  her  that 
he  had  offered  periodically  to  present  further  information  to  the  Sub- 
committee relative  to  the  resolution  against  Benton,  but  each  time  the 
date  had  been  cancelled  or  postponed  because  Senator  Benton  could 
not  appear,  but  if  the  Subcommittee  was  sincere,  he  proposed  the  date 
of  July  3  (Exhibit  32). 

On  June  25.  1952,  a  wire  was  addressed  to  Senator  McCarthy  by 
Senator  Gillette  confirming  July  3  as  the  date  of  hearing  Senator 
McCarthy  on  his  resolution  against  Senator  Benton  (Exhibit  33). 

On  July  1, 1952,  Senator  McCarthy  wrote  Senator  Gillette,  advising 
that  he  understood  the  Subcommittee  wanted  additional  material  to 
implement  tliat  contained  in  his  resolution  against  Senator  Benton 
and  he  would  appear  in  accordance  with  the  request,  but  that  he 
wanted  it  understood  that  he  had  never  requested  and  was  not  now 
requesting  the  opj^ortunity.  He  said  he  felt  that  he  liad  given  ample 
leads  in  his  resolution  and  that  he  was  far  too  busy  witb  more  im- 
portant matters  to  waste  much  time  with  "Benton"  (Exhibit  34). 

A  public  hearing  was  held  on  July  3,  1952,  at  which  Senator  Mc- 
Carthy presented  further  allegations  against  Senator  Benton,  prin- 
cipally concerning  Benton's  harboring  and  emjjloying  communists 
in  the  State  Department.  Senator  Benton  also  ap])eared  at  this  pub- 
lic hearing  and,  after  Senator  McCarthy  had  testified,  gave  testimony 


8 

in  refutation  of  these  charges  and  other  matters  contained  in  S.  Res. 
304. 

On  September  8, 1952,  one  day  prior  to  Senator  McCarthy's  primary 
election  in  Wisconsin,  Jack  Poorbaugh,  a  Subcommittee  investigator, 
resigned  after  issuing  a  statement  to  the  press,  giving  as  a  reason  for 
his  resignation  that  the  Subcommittee  was  not  fair  in  its  treatment  of 
the  two  resolutions  to  the  prejudice  of  Senator  McCarthy,  and  that 
alleged  information  was  supplied  to  certain  correspondents  for  the 
apparent  purpose  of  smearing  Senator  McCarthy  (Exhibit  35) .  (This 
resignation  will  be  mentioned  later  in  this  report.) 

By  letter  of  September  9,  1952,  Senator  Herman  Welker,  of  Idaho, 
submitted  his  resignation  from  the  Subcommittee  on  Privileges  and 
Elections  to  Senator  Carl  Hayden,  Chairman  of  the  Committee  on 
Rules  and  Administration  (Exhibit  36).  By  letter  of  September  10, 
1952,  to  Senator  Hayden,  Senator  Gillette,  Chairman  of  the  Subcom- 
mittee, submitted  his  resignation  from  the  Subcommittee  eflFective 
September  26,  giving  as  his  reason,  the  fact  that  he  was  seriously 
disturbed  over  the  recent  action  of  Senator  Welker  and  investigator 
Poorbaugh,  both  of  whose  resignations  were  given  to  the  press  prior 
to  the  time  he  received  them,  and  to  the  situation  which  had  developed 
with  reference  to  the  Subcommittee  work  seeming  to  indicate  a  pur- 
pose on  the  part  of  adherents  of  both  Senator  McCarthy  and  Senator 
Benton  to  discredit  the  work  of  the  Subcommittee,  which  efforts 
recently  had  been  directed  to  attacks  on  Senator  Gillette  personally 
(Exhibit  3r). 

At  the  Subcommittee  meeting  of  September  26,  1952,  Senator 
Thomas  C.  Hennings,  Jr.,  of  Missouri,  was  delegated  to  serve  as  Chair- 
man of  the  Subcommittee  and  Senator  Robert  C.  Hendrickson,  of 
New  Jersey,  to  serve  as  Vice  Chairman,  and  the  Subcommittee  was 
reduced  to  three  members,  the  third  member  being  Senator  Mike 
Monroney,  of  Oklahoma.  Subsequently,  in  view  of  Senator  Mon- 
roney's  absence  in  Europe,  his  resignation  from  the  Subcommittee  was 
accepted  and  Senator  Carl  Hayden  became  the  third  member. 

At  the  instruction  of  the  Subcommittee,  its  Chief  Counsel,  under 
date  of  November  7, 1952,  addressed  letters  to  both  Senators  McCarthy 
and  Benton,  inviting  them  to  appear  before  the  Subcommittee  in  execu- 
tive session  in  connection  with  the  Subcommittee's  consideration  of 
S.  Res.  187  and  S.  Res.  304,  and  advising  that  the  Subcommittee  would 
make  itself  available  during  the  week  of  November  I7th  for  that 
purpose  (Exhibits  38  and  39). 

Senator  Benton  telephoned  in  response  to  Subcommittee  Counsel's 
letter  and  advised  that  he  would  make  himself  available  at  any  time. 
By  letter  of  November  10  (postmarked  "9:30  p.  m.,  November  13, 
1952"),  Senator  McCarthy's  Administrative  Assistant,  Ray  Kiermas, 
advised  the  Subcommittee  that  Senator  McCarthy  was  away  from 
Washington  and  did  not  know  just  when  he  would  return,  and  that  it 
did  not  presently  seem  he  would  be  available  to  appear  before  the 
Subcommittee  during  the  week  mentioned;  however,  if  the  Subcom- 
mittee would  let  Senator  McCarthy  know  just  what  information  was 
desired,  he  would  be  erlad  to  try  to  be  of  help  (Exhibits  40  and  40a). 

On  November  21, 1952.  Senator  Hennincrs.  on  behalf  of  the  Subcom- 
mittee, wrote  Senator  McCarthy  suggesting  Senator  McCarthy's  ap- 
pearance any  time  between  November  22  and  November  25,  1952,  and, 
in  pursuance  of  Senator  McCarthy's  offer  of  assistance,  pointed  out 


that  the  Subcommittee  wanted  to  make  inquiry  with  respect  to  the 
following  matters : 

(1)  Whether  any  funds  coUertod  or  received  by  you  and  by  others  on  your 
behalf  to  conduct  certain  of  your  activities,  including  tliose  relating  to  "com- 
munism," were  ever  diverted  and  used  lor  other  purposes  inuring  to  your  per- 
sonal atlvantage.  ,  o*  * 

(2)  Whether  you,  at  any  time,  used  your  official  position  as  a  United  btates 
Senator  and  as  a  member  of  the  Banking  and  Currency  Committee,  the  Joint 
Housing  Cummittee,  and  the  Senate  Investigations  Committee  to  obtain  a  $10,000 
fee  from  the  Lustrou  Corporation,  which  company  was  then  almost  entirely 
subsidized  by  agencies  under  the  jurisdiction  of  the  very  Committees  of  which, 
you  were  a  member. 

(3)  Whether  your  activities  on  behalf  of  certain  special  interest  groups,  suchi 
as  housing,  sugar  and  China,  were  motivated  by  self-interest. 

(4)  Whether  your  activities  with  respect  to  your  senatorial  campaigns,  par- 
ticularly with  respect  to  the  reporting  of  your  linancing  and  your  activities 
relating  to  the  tinancial  transactions  with,  and  subsequent  employment  of,  Ray 
Kiermas  involved  violations  of  the  Federal  anci  State  Corrupt  Practices  Acts. 

(5)  Whether  loan  or  other  transactions  which  you  had  with  the  Appleton 
State  l>ank,  of  Appleton,  Wisconsin,  involved  violations  of  tax  and  banking  laws. 

(G)  Whether  you  used  close  associates  and  members  of  your  family  to  secrete 
receipts,  income,  commodity  and  stock  speculation,  and  other  financial  trans- 
actions for  ulterior  motives. 

(For  a  complete  copy  of  this  letter,  see  Exhibit  41.) 

This  letter  was  delivered  by  Subcommittee  Counsel  to  Senator 
McCarthy's  office  and  when  informed  that  Senator  INIcCarthy  was  in 
the  woods  hunting  and  could  not  be  reached,  the  Subcommittee  sent 
a  tele<2;ram  immediately  to  his  Appleton,  Wisconsin,  address,  advis- 
ing him  of  the  dates  available  for  him  ta  appear  and  referring  to 
the  letter  of  the  same  date  (Exhibit  42) . 

On  November  21,  1952,  the  Chairman  also  addressed  a  letter  to 
Senator  Benton,  advising  him  that  the  Subcommittee  would  be  avail- 
able to  hear  his  testimony  between  November  22  and  November  25, 
1952  (Exhibit  43).  On  November  23,  1952,  Senator  Benton  was  ex- 
amined in  executive  session. 

On  the  evening  of  December  1,  1952,  there  were  delivered  in  person 
to  Senator  Hennings  office  two  letters  from  Senator  jSIcCarthy;  the 
lirst  was  dated  November  28, 1952,  and  advised  that  Senator  McOarthv 
had  just  received  the  Subcommittee's  telegram  of  November  22,  which 
had  been  sent  even  though  Senator  Hennings  had  previously  been  in- 
formed that  Senator  McCarthy  was  not  expected  to  return  to  Washing- 
ton until  November  27,  on  which  date  he  did  return  (Exhibit  44)  ;  the 
second  letter,  dated  December  1,  1952,  acknowledged  receipt  of  the 
Subcommittee's  letter  of  November  21,  questioned  the  honesty  of  the 
Subcommittee,  pointed  out  that  two  members  of  the  stalf  had  resigned, 
giving  as  a  reason  that  the  Sul)committee  was  dishonestly  used  for 
political  purposes,  and  that  two  Senators  had  also  resigned,  one  in- 
dicting the  Subconmiittee  for  complete  dishonesty  and  the  other  with- 
out giving  any  plausible  reason,  and  that  he  would  not  ordinarily 
dignify  the  Subconnnittee  by  answering  the  letter  of  November  21, 
1952.  but,  in  order  to  have  the  record  straight,  "The  answer  to  the  six 
insulting  questions  in  vour  letter  of  November  21,  is  'No'."  (Exhibit 
45.) 

Why  tli^  Sv}) committee  didii't  subpoena  Senator  McCarthy 

There  would  appear  to  be  no  reason,  under  the  law,  why  Senator  Mc- 
Carthy would  not  be  subject  to  a  subpoena  issued  by  this  Subcommittee 


10 

summoning  him  to  appear  before  it  for  questioning.  Although  recog- 
nizing its  authority,  the  Subcommittee  did  not  choose  to  do  so.  Senator 
McCarthy  is  a  member  of  the  same  Senate  from  which  such 
authority  to  subpoena  stems  and,  until  this  year,  was  a  fellow  member 
of  the  Senate  Committee  on  Rules  and  Administration,  the  parent  of 
this  Subcommittee.  He  is  quite  familiar  with  the  rules  governing  the 
operation  of  the  Senate  and  the  responsibility  placed  upon  the  indi- 
vidual members  by  committee  assignments.  The  issues  of  this  case 
involve  an  internal  procedure  of  the  Senate  itself,  stemming  from  the 
Constitution,  whereby  that  body  has  the  authority  and  responsibility 
for  keeping  its  own  house  in  order. 

In  S.  Res.  187,  this  Subcommittee  had  before  it,  at  the  outset,  merely 
the  issue  of  determining  the  merits  of  Senator  Benton's  charges  relat- 
ing to  Senator  McCarthy's  fitness  to  sit  in  the  Senate.  As  indi- 
cated. Senator  McCarthy  was  invited  to  attend  Subcommittee  hearings 
on  six  occasions  to  present  his  explanations  of  the  issues  raised  in 
S.  Res.  187  and  the  investigation  made  pursuant  thereto.  Three  of  the 
invitations  were  extended  prior  to  the  Senate  vote  on  April  10,  1952, 
and  three  invitations  were  extended  subsequently.  Senator  McCarthy 
should  have  known  that  the  most  expeditious  way  to  resolve  the  issues 
would  have  been  to  appear  before  the  Subcommittee  to  make  such  state- 
ments and  refutations  of  the  charges  as  he  saw  fit.  For  reasons  known 
only  to  Senator  McCarthy,  he  chose  not  to  accept  this  course,  but  to 
charge  that  the  allegations  were  a  smear  and  that  the  Subcommittee 
was  dishonest  and  doing  the  work  of  communists.  Between  October 
1951  and  April  1952  he  refused  to  honor  the  invitations  of  the  Sub- 
committee on  Privileges  and  Elections  on  the  grounds  that  it  lacked 
jurisdiction  and  that  the  members  of  said  Subcommittee  were  dishonest 
in  their  motives  for  insisting  on  any  investigation,  which,  he  contended, 
was  solely  because  of  his  exposure  of  communists  in  Government. 
Subsequent  to  April  10, 1952,  and  in  the  face  of  the  Senate's  60-0  vote 
confirming  the  integrity  of  the  members  of  the  Subcommittee  and  its 
jurisdiction  to  investigate  the  matters  involved.  Senator  McCarthy 
continued  to  reject  the  invitations  of  the  Subcommittee  to  appear 
before  it  for  the  purpose  of  presenting  testimony  in  explanation  of  the 
issues  raised  by  the  investigation,  and  continued  his  attack  upon  the 
members  of  the  Subcommittee. 

Such  action  on  the  part  of  Senator  McCarthy  might  appear  to 
reflect  a  disdain  and  contempt  for  the  rules  and  wishes  of  the  entire 
Senate  body,  as  well  as  the  n^embership  of  the  Subcommittee  on  Privi- 
leges and  Elections. 

For  much  the  same  reason,  the  Subcommittee  did  not  subpoena 
members  of  Senator  McCarthy's  office  staff  and  family,  or  his  close 
associates.  Until  very  recently,  there  was  a  chance  that  Senator 
McCarthy  would  himself  come  in  to  give  explanations  with  respect 
to  the  many  transactions  under  question  which  he  has  had  with  such 
persons,  and  which  will  be  mentioned  later  in  this  report.  Senator 
McCarthy,  by  his  failure  to  cooperate,  placed  those  people  in  the  posi- 
tion where,  if  they  had  been  subpoenaed,  they  would  have  had  to  give 
testimony  and  explanations  which  Senator  McCarthy  had  refused  to 
give  or  else  be  in  contempt  of  the  Senate.  It  would  have  been  an 
unfair  position  to  place  them  in. 


11 

The  reason  for  the  long  delay  in  the  investigation  and  report 

The  Subcommittee  desires  to  be  the  first  to  admit  and.  furtlier,  re- 
sent that  S.  Res.  187  pertainin<x  to  Senator  McCartliy  has  taken  up 
an  excessive  amount  of  its  time  and  has  doin-ived  the  niembei-s  thereof 
of  time  and  etlort  Avhich  they  couKl  have  spent  on  other  pressing 
matters  for  which,  as  Senators,  they  were  responsible.  The  magni- 
tude of  the  unpleasantness  connected  with  the  assigned  responsibility 
of  the  present  inquiry  can  only  be  demonstrated  by  setting  forth,  as 
above,  the  record  of  what  transpired.  It  is  quite  apparent  that  too 
much  of  the  time  from  September  1951  through  June  1952,  and  again 
between  November  7  and  December  12  of  this  year,  was  spent  in 
carrying  on  correspondence  witii  Senator  McCarthy  and  .smarting 
from  his  diverse  attacks  upon  the  membership  of  the  Subcommittee. 
The  Subcommittee  members  did  not  ask  for  the  assignment  to  inves- 
tigate Senator  McCarthy's  activities.  It  was  willing,  as  early  as  Sep- 
tember 28,  1951,  to  hear  him  for  the  purpose  of  determining  whether 
there  was  any  merit  to  S.  Res.  187.  The  record  of  what  took  place 
thereafter  leaves  the  inescapable  conclusion  that  Senator  McCarthy 
deliberately  set  out  to  thwart  any  investigation  of  him  by  obscuring 
the  real  issue  and  the  responsibility  of  the  Subcommittee  by  charges 
of  lack  of  jurisdiction,  smear,  and  communist-inspired  persecution. 
Senator  McCarthy's  metliods,  his  contempt  for  the  Subcommittee's 
eti'orts,  even  after  the  unanimous  vote  of  the  entire  Senate,  and  his 
refusal  to  cooperate  in  any  way,  were  very  effective  up  to  a  point,  but 
did  not  resolve  the  issue.  The  Subcommittee  was  continually  faced 
with  the  alternative  of  having  to  throw  up  its  hands  and  admit  that 
the  task  of  investigating  Senator  McCarthy  was  too  difficult  and  un- 
pleasant, or  to  keep  proceeding  with  the  inquiry,  which  raised  addi- 
tional questions  with  respect  to  his  activities  as  a  Senator. 

By  his  attacks  upon  the  Sul)Committee,  which  hampered  its  prog- 
ress. Senator  McCarthy  nevertheless  kept  the  inquiry  open.  His 
charges,  as  set  forth  in' his  letter  of  December  6,  1951  (Exhibit  6), 
that  the  Subcommittee  was  spending  tens  of  thousands  of  dollars  and 
had  a  horde  of  investigators  going  into  his  life  back  to  a  time  before 
he  was  old  enough  to  sit  in  the  Senate,  are,  of  course,  without  foun- 
dation. The  record  will  reflect  that  the  great  percentage  of  the  in- 
vestigation of  Senator  McCarthy  has  been  conducted  by  one  staff 
member.  This  was  particularly'  true  until  the  Subcommittee  staff 
was  reconstituted  in  September  and  October  of  this  year. 

In  the  early  Fall  of  this  year,  the  Subcommittee  was  confronted  with 
the  burden  of  work  which  occurs  incident  to  a  national  election  (it 
also  has  the  responsibility  for  matters  pertaining  to  Presidential  and 
Vice-Presidential  elections  as  well  as  senatorial  contests,  remedial  leg- 
islation, etc.)  and  had  reached  a  point  where  little  progress  was  being 
made  in  the  investigation  of  Senator  McCarthy,  because  of  the  Sen- 
ators continued  attitude,  attendant  charges  and  counter-charges  of 
partisanship  on  the  Subcommittee  staff,  leaks  to  the  press,  etc.  As  a 
solution,  the  Subcommittee  employed  a  new  Chiof  Counsel  Paul  J. 
Cotter  and  a  staff  of  experienced  investigators.  The  only  employee 
of  the  previous  staff  retained  for  work  on  the  Senator  McCarthy  and 
Senator  Benton  inquiries  was  the  one  mentioned  above,  an  accountant. 


12 

At  this  late  date,  there  was  little  time  left  to  resolve  the  issues,  in 
view  of  Senator  McCarthy's  continued  refusal  to  cooperate.  It  is  true 
that  much  too  much  time  and  expense  have  been  spent  on  the  investi- 
gation of  Senator  McCarthy  which,  the  record  will  reflect,  was  directly 
caused  by  the  attitude  and  methods  employed  by  said  Senator. 

Reasons  for  treating  with  S.  Res.  1^  and  S.  Res.  304-  'in  the  same  report 
For  the  reason  that  it  is  quite  apparent  that  S.  Res.  304  would  not 
have  been  introduced  had  it  not  been  for  the  introduction  of  S.  Res.  187, 
304  being  in  the  nature  of  a  cross  complaint,  any  discussion  of  the  two 
resolutions  would  appear  appropriate  in  one  report. 

At  the  present  time,  there  is  little  comparison  between  S.  Res.  187, 
introduced  by  Senator  Benton  with  respect  to  Senator  McCarthy,  and 
S.  Res.  304,  later  introduced  by  Senator  McCarthy  with  respect  to 
Senator  Benton,  in  view  of  Senator  Benton's  recent  defeat  in  the 
senatorial  election,  which  makes  the  issues  raised  by  S.  Res.  304  moot. 
However,  in  the  interests  of  remedial  legislation,  it  was  determined  to 
continue  the  investigation  with  respect  to  certain  phases  of  S.  Res.  304 
to  bring  it  to  its  logical  conclusion  and  to  include  it  in  the  same  report 
with  S.  Res.  187. 

I.  RESULTS  OF  INVESTIGATION  PURSUANT  TO 

S.  RES.  187 

The  Subcommittee,  from  the  outset,  was  forced  to  take  cognizance  of 
the  fact  that  Senator  McCarthy  was  a  highly  controversial  figure. 
His  critics  represented  him  as  a  ruthless  opportunist  who  would  use 
any  cause  for  self-advancement  and  who  has  confused  and  hampered 
the  fight  of  constituted  agencies  against  communism  in  this  country 
by  his  self-appointed  crusade  and  ungoverned  accusations  against  any- 
body whom  it  would  serve  his  best  purpose  to  charge.  His  admirers 
represented  him  as  a  vital  force  who,  regardless  of  methods  em- 
ployed, has  been  responsible  for  penetrating  the  indifference  to  Com- 
munists and  fellow  travellers  in  Government  and  other  high  positions 
in  the  country.  This  fact,  plus  the  fact  that  Senator  McCarthy,  from 
the  outset,  has  taken  the  position  that  S.  Res.  187  was  communist- 
inspired,  and  that  this  Subcommittee,  by  making  any  investigation 
of  him,  was  aiding  the  Communist  cause,  has  made  the  Subcommittee's 
assignment  exceedingly  more  difficult  and,  because  of  it,  this  Subcom- 
mittee and  staff  have  made  a'  particular  effort  to  confine  themselves 
to  the  more  fundamental  issues. 

SCOPE  OF  THE  INVESTIGATION 

Senate  Resolution  187  called  for  the  further  investigation  of  Senator 
McCarthy's  participation  in  the  1950  Maryland  senatorial  campaign 
and  other  acts  to  determine  his  fitness  to  serve  as  a  Senator  (Exhibit  1) . 

On  September  28,  1951,  Senator  Benton,  in  further  support  of 
S.  Res.  187,  gave  testimony  before  the  Subcommittee,  in  which  he  out- 
lined ten  specific  charges:  (1)  that  Senator  McCarthy  had  perjured 
himself  with  respect  to  statements  he  had  made  on  the  radio  con- 
cerning Communists  in  the  State  Department;  (2)  that  Senator 
McCarthy  had  been  highly  unethical  in  accepting  a  $10,000  fee  from 
the  Lustron  Corporation;  (3)  that  Senator  McCarthy  had  alleged 
that  General  Marshal  was  a  member  of  a  "conspiracy  to  aid  Russia"; 
(4)  that  Senator  McCarthy  had  engaged  in  calculated  deceits  in  his 


13 

statements  that  he  had  been  forced  to  make  public  the  names  of  persons 
Avitli  communist  affiliations  in  the  State  Department ;  (5)  that  Senator 
McCarthy  en<ra,jj:ed  in  fraud  and  deceit  in  tiie  Maryland  senatorial 
election  of  1950;  (6)  that  Senator  ^McCarthy  alle«,^edly  stated  that 
he  would  not  claim  senatorial  innnunity;  (7)  dealt  with  an  alle<z;ed 
FBI  chart  referred  to  by  Senator  McCarthy  and  described  as  a  "hoax'* 
by  Senator  Benton;  (8)  that  Senator  McCarthy  repeatedly  stated  that 
he  would  name  the  names  of  communists  in  the  State  Department, 
when  subsequent  statements  by  him  disclosed  that  he  had  no  names; 
(9)  dealt  with  Senator  McCarthy's  intervention  on  behalf  of  the 
defendants  in  the  Malmedy  Massacre  case;  and  (10)  dealt  with  per- 
sons Senator  McCarthy  employed — particularly  Don  Surine's  false 
statements  conccrnino:  the  circumstances  under  which  he  had  left  the 
employment  of  the  FBI.  and  the  employment  of  an  alleged  Com- 
munist, Charles  Davis,  for  investigation  work  in  Europe. 

By  letter  of  October  5,  Senator  Benton  recjuested  that  the  investi- 

fation  of  Senator  McCarthy  be  extended  to  include  acts  of  Senator 
IcCarthy  prior  to  his  election  as  a  United  States  Senator,  particularly 
his  involvement  in  the  Quaker  Dairy  case, /State  vs.  McCarthy  in  1941 ; 
in  Senator  McCarthy's  violation  of  the  State  Constitution  in  1946  in 
running  for  the  Senate  while  holding  the  position  of  Judge,  and  in 
charges  that  Senator  McCarthy,  as  a  Judge,  specialized  in  divorce 
mill  actions  (Exhibit  46). 

Upon  Senator  McCarthy's  refusal  to  appear  before  the  Subcom- 
mittee, the  staff  was  directed  to  proceed  with  an  investigation,  the 
report  of  which  was  completed  and  submitted  to  the  Subcommittee 
in  January  of  1952. 

Information  from  this  unreleased  report  appeared  in  the  press. 
There  were  uncontirmed  reports  and  accusations  that  these  leaks  were 
inspired  to  ''smear''  Senator  McCarthy.  There  were  like  reports  that 
Senator  McCarthy  had  obtained  a  copy  of  the  confidential  staff  report 
and  leaked  it  to  the  press  to  embarrass  the  Subcommittee.  Unfortu- 
nate and  irresponsible  as  this  event  proved  to  be,  it  is  a  matter  which 
this  Subcommittee  could  not  and  does  not  propose  to  resolve. 

After  the  vote  of  the  Senate  confirming  the  jurisdiction  and  in- 
tegrity of  the  Subcommittee,  public  hearings  were  ordered  and  held 
from  May  12  through  May  IG,  1952,  inclusive,  on  the  Lustron  fee 
phases  of  Senator  Benton's  charges.  Under  all  the  circumstances 
and  particularly  without  some  explanation  from  Senator  McCarthy, 
who  refused  to  testify,  the  acceptance  of  this  $10,000  fee  would  appear 
to  have  been  highly  improper,  to  say  the  least.  The  facts  adduced  by 
investigation  and  hearings  with  respect  to  this  matter  will  be  sum- 
marized later  in  this  report. 

The  information  developed  in  connection  with  Senator  McCarthy's 
obtaining,  disposition  of  and  reporting  of  his  taxable  income  on  the 
Lustron  $10,000  fee,  as  well  as  reports  and  rumor  that  he  had  collected 
funds  for  his  anti-comnuinist  fight  which  he  had  possibly  diverted  to 
his  own  use  and  received  money  for  aiding  special  interest  groups 
while  a  United  States  Senator,  brought  about  an  extension  of  the 
investigation  into  his  financial  and  other  activities,  and  it  is  the  infor- 
mation in  this  connection  which  will  be  treated  with  primarily  in  this 
report. 

In  Senator  Benton's  charges  against  Senator  McCarthy  and  also  in 
Senator  McCarthy's  charges   against  Senator   Benton,  there  were 

J.  236027 2 


14 

contained  matters  so  controversial  in  nature  that  it  would  not  be  feas- 
ible for  this  Subcommittee,  or  perhaps  any  other  agency,  regardless  of 
its  resources,  to  resolve. 

This  Subcommittee  is  reluctant  to  become  involved  in  matters  con- 
cerning speeches  and  statements.  It  has  already  made  a  report  on  its 
investigation  into  the  1950  Maryland  senatorial  campaign,  including 
Senator  JNIcCarthj^'s  participation  therein,  and  feels  this  report  speaks 
for  itself.  It  should  not  be  necessary  to  state  that  the  Subcommittee  in 
its  effort  to  in  no  way  give  aid  to  communism  or  detract  from  anything 
which  has  been  done  to  prevent  communist  infiltration  in  Government 
or  elsewhere,  has  scrupulously  attempted  to  avoid  any  issues  wherein 
its  position  might  be  misinterpreted.  It  does  not  intend  to  go  into 
matters  relating  to  Senator  McCarthy's  activities  prior  to  the  time  he 
was  a  candidate  for  the  United  States  Senate,  except  insofar  as  such 
information  may  be  necessary  to  a  better  understanding  of  later 
financial  matters  treated  with. 

Press  releases  of  two  former  Subcommittee  staff  merribers 

The  Subcommittee  does  not  intend  to  go  into  the  circumstances  sur- 
rounding adverse  press  releases  which  were  made  by  two  of  its  staff 
members  during  the  course  of  this  investigation,  except  to  give  the 
information  on  hand  with  respect  to  the  circumstances  surrounding  the 
making  of  such  statements  to  the  press. 

On  December  8,  1951,  the  services  of  Daniel  R.  Buckley,  a  staff 
investigator,  were  terminated,  together  with  those  of  two  other  inves- 
tigators, for  the  reason  that  their  services  were  no  longer  necessary. 
Approximately  three  weeks  later,  on  December  27,  1951,  at  5  :  00  p.  m., 
Mr.  Buckley  issued  a  long  prepared  press  release  which  was  highly 
critical  of  the  Subcommittee  and  stated  that  it  was  being  used  to  smear 
Senator  McCarthy  (Exhibit  47). 

Records  of  the  telephone  company,  apparently  obtained  at  the  time, 
reflect  that  at  3 :  06  p.  m.  of  that  date  (December  27,  1951),  Miss  Jean 
Kerr,  Senator  McCarthy's  secretary,  made  a  call  from  the  Senate 
Office  Building  to  Mr.  Buckley,  and  that  at  4 :  41  p.  m.,  Mr,  Buckley 
called  the  office  of  Fulton  Lewis,  Jr.,  in  Washington,  D.  C.  Two  other 
calls  were  made  on  December  27, 1951,  by  Mr.  Buckley  in  New  York  to 
Miss  Jean  Kerr  in  Washington  at  7 :  40  and  10 :  33  p.  m.  There  were 
also  a  number  of  other  calls  to  Miss  Kerr  subsequent  to  that  date,  all 
of  which  are  listed  on  Exhibit  47a  attached. 

On  September  8,  1952,  Jack  Poorbaugh,  a  Subcommittee  investi- 
gator, resigned  from  the  staff  by  telegram  from  Cleveland,  Ohio,  his 
home,  which  wire  he  simultaneously  released  to  the  press.  In  the 
telegram,  Mr.  Poorbaugh  stated  that  the  Subcommittee  was  being  un- 
fair to  the  prejudice  of  Senator  McCarthy.  (This  wire  is  attached 
as  Exhibit  35.)  It  will  be  noted  that  September  8th  was  the  day  be- 
fore the  Wisconsin  primary  in  which  Senator  McCarthy  was  a  candi- 
date. Information  from  a  reliable  source  reported  that  Mr.  Poor- 
baugh had  conferred  with  associates  of  Senator  McCarthy,  including 
Fulton  Lewis,  Jr.,  just  prior  to  his  resignation  in  order  to  assist  Sen- 
ator McCarthy  in  the  primary  election.  In  conflict  with  this  action  was 
a  letter  (a  photostatic  QO\>y  of  which  is  attached  as  Exhibit  48).  written 
in  long-hand  by  M.\  Poorbaugh  to  Subcommittee  Counsel,  in  which  he 
requested  two  weeks'  leave  without  pay  to  proceed  to  Cleveland  to 
attend  to  personal  matters.    This  letter  was  written  in  the  office  of  the 


15 

Subcommittee  on  Saturday,  September  6,  and  left  on  the  Committee 
Counsel's  desk,  in  his  absence. 

******* 

"When  the  Subcommittee  received  the  letter  dated  Novcmbi-r  10, 
195:2,  from  Senator  McCartliy's  Administrative  Assistant,  Mr.  Kier- 
nias,  advising  that  if  the  Subcommittee  would  let  Senator  McCarthy 
know  just  wliat  information  was  desired,  he  would  be  glad  to  try  to 
help  (Exhibit  40),  it  was  hoped  that,  at  last,  possibly  Senator  Mc- 
Carth}'  would  come  before  the  Subconnnittee  and  give  his  explana- 
tions of  the  many  transactions  in  which  he  engaged,  which,  at  least 
without  some  explanation,  looked  highly  irregular. 

It  was  in  furtherance  of  this  lirst  offer  of  cooperation  received  from 
Senator  McCarthy  which  caused  the  Subcommittee  to  send  him  the 
letter  of  November  21,  1952  (Exhibit  41),  which  set  forth  the  six 
general  questions  previously  stated  in  this  report  and  about  which  the 
Subcommittee  desired  information.  The  Subcommittee  believed  that 
Senator  McCarthy,  from  his  intimate  knowledge  of  his  own  activities, 
would  and  did  obtain  from  these  questions  a  good  impression  of  the 
explanations  desired. 

Senator  McCarthy's  curt  reply  (Exhibit  45)  that  the  ansAver  to  the 
"six  insulting  questions  ...  is  'No'  ",  left  the  Subcommittee  with 
no  alternative  but  to  make  its  report  with  the  information  which  it 
had,  leaving  to  the  members  of  the  Senate  to  draw"  such  conclu- 
sions from  it  as  they  would.  It  is  under  the  headings  of  these  six 
general  questions  that  the  body  of  this  report  is  being  written. 

The  exhibits  and  other  facts  appearing  in  this  report  were  pre- 
sented to  the  Subcommittee  by  witnesses  under  oath. 

Whether  Under  the  Circumstances  it  was  Proper  for  Senator 
McCarthy  to  Receive  $10,000  from  the  Lustron  Corporation 

On  September  28,  1951,  Senator  Benton,  in  his  testimony  before 
the  Privileges  and  Elections  Subcommittee  in  support  of  S.  Res.  187, 
raised  the  question  as  to  the  propriety  of  Senator  McCarthy's  re- 
ceiving a  $10,000  fee  from  the  Lustron  Corporation  of  Columbus, 
Ohio,  which  was  being  financed  by  the  Reconstruction  Finance  Cor- 
poration.    (See  Hearings,  pp.  23-28.) 

During  the  80th  Congress,  Senator  McCarthy  was  a  member  of  the 
Banking  and  Currency  Committee,  which  Committee  had  jurisdiction 
over  both  the  RFC  and  the  Housing  Agencies,  as  well  as  the  Com- 
mittee on  Expenditures  in  the  P^xecutive  Departments,  which  Com- 
mittee was  also  interested  in  some  of  the  Lustron  operations. 

The  Lustron  prefabricated  steel  house,  endorsed  by  various  veteran 
and  other  organizations  and  sponsored  by  the  Housing  Agencies  in 
accordance  with  the  Veterans'  P^mergency  Housing  Act  of  1946,  was 
ultimately  financed  by  the  RFC,  over  its  initial  objection  due  to  the 
fact  that  the  private  risk  capital  involved  was  negligible.  A  series  of 
7  loans  totalling  $37,500,000  were  made  between  June  30,  1947,  and 
August  29, 1949. 

The  venture  was  a  failure;  RFC  instituted  foreclosure  on  Febru- 
ary 14,  1950,  and  the  loss  to  the  Government  will  reportedly  exceed 
$30,000,000.  Incident  to  a  subsequent  inquiry  by  the  Senate  Subcom- 
mittee on  RFC,  it  was  developed  that  Lustron  had  been  mismanaged; 
that  frauds  had  been  practiced  upon  it;  and  that  excessive  salaries 
were  paid  officials,  such  as  E.  Merl  Young,  because  of  alleged  influence. 


16 

Tlie  payment  of  the  $10,000  Lustron  fee  to  Senator  McCarthy  was 
also  referred  to. 

Diirin<ij  the  pertinent  period  of  the  Lustron  operations,  both  Lustron 
and  the  RFC  were  particular!}^  sensitive  to  the  will  of  the  Congress; 
Lustron  because,  aside  from  an  initial  relatively  negligible  investment, 
it  was  entirely  financed  by  public  funds;  the  EFC  because  its  au- 
thority expired  as  of  June  30,  1947,  and  the  Congress  was  obliged  to 
temporarily  extend  it  for  one  year  until  further  inquiry  was  com- 
pleted, when  the  life  of  the  RFC  was  extended,  on  June  30,  1948. 

On  January  14^15,  1948,  the  Senate  Banking  and  Currency  Com- 
mittee, at  Washington  hearings  pursuant  to  its  investigation  of  RFC 
operations  under  S.  Res.  132,  and  its  inquiry  regarding  Lustron,  de- 
veloped through  Lustron  president,  Carl  Strandlund,  that  he  had  been 
advised  of  his  need  for  Congressional  support  of  his  venture  (p.  351), 
and  that  he  accordingly  did  see  many  Senators  and  Congressmen  to 
present  the  merits  of  liis  project  (p.  363) . 

Senator  McCarthy,  a  sponsor  of  the  resolution  of  July  1947  which 
created  the  Joint  Committee  on  Housing,  consisting  of  members  of  the 
Banking  and  Currency  Committees  of  both  the  House  and  the  Senate, 
took  an  active  part,  as  Vice  Chairman,  in  its  nation-wide  hearings  on 
housing  conditions.  Upon  the  completion  of  the  housing  inquiry  on 
March  15,  1948,  Senator  McCarthy  filed  his  own  report  reflecting  his 
views  on  housing  and  related  proposed  legislation,  and  favored  en- 
couragement of  mass  produced  homes.  He  particularly  commended 
the  Housing  and  Home  Finance  Administration  and  recommended 
that  Administrator  Foley's  salary  be  increased. 

Various  amendments  and  additions  to  the  Housing  Act,  after  nu- 
merous proposals,  substitutions,  etc.,  some  of  which  were  sponsored  by 
Senator  McCarthy,  were  ultimately  approved  by  the  Senate  and  were 
incorporated  into  the  related  housing  laws.  Section  102  of  Public  Law 
801  (August  10,  1948)  authorized  the  RFC  to  make  loans  to  pre-fab 
manufacturers,  aggregating  no  more  than  fifty  million  dollars.  This 
provision  gave  the  RFC  additional  funds  and  authority  to  make  its 
third  Lustron  loan  of  $7,000,000  on  :^ebruary  14,  1949,  as  well  as  the 
subsequent  loans.  The  Act  also  provided  for  an  increase  in  the  salary 
of  the  HHFA  Administrator. 

A  few  days  subseque'nt  to  the  enactment  of  the  new  Housing  Act,. 
Senator  McCarthy  contacted  Administrator  Foley  to  request  his  assist- 
ance for  Miss  Jean  Kerr,  of  his  office,  who  was  working  on  a  housing- 
manuscript.  The  HHFA  cooj^erated  and  assisted  her  in  the  compila- 
tion of  data,  etc.,  through  December,  1948.  (See  testimony  of  Walter 
Moore  Royal,  Jr.,  Special  Assistant  to  the  HHFA  Director  of  Infor- 
mation, before  the  Privileges  and  Elections  Subconuuittee  on  May 
16,  1952,  pp.  293-320.)  HHFA  Administrator  Foley,  in  a  letter  dated 
Febi'uary  23. 1951,  to  Senator  Maybank,  Chairman  of  the  Senate  Com- 
mittee oil  Banking  a,nd  Currency,  outlined  in  detail  the  part  played  by 
his  agency  in  the  ])reparation  oi  Senator  McCarthy's  housing  booklet, 
their  review  and  corrections  of  three  separate  drafts. 

These  Subcommittee's  hearings  of  IVIay  1952  developed  that  Senator 
McCarthy  approached  Strandlund  during  October  of  1918,  setting  a 
price  of  ?^1 0,000  for  his  housing  manuscript,  which  was  "not  in  pub- 
lishal)le  form",  and  that  Strandlund  agreed  toit  w-  'lout  any  prior  con- 
sultation Avitli  his  public  relations  or  executive  stuif,  or  notification  to 
the  RFC,  and  at  a  time  when  Lustron  had  not  completed  its  maclijnery 


17 

and  tooling  installation,  had  a  huge  backlog  of  orders  and  had  com- 
pleted only  a  few  sample  liouses  for  demonstration  purposes.  (See 
testimony  of  Carl  Straiidlund,  Lorenzo  Semple,  Thomas  J.  O'SuUivan, 
Maron  J.  Simon,  and  George  E.  McConley ;  pp.  76-86,  109,  141 ;  188- 
193;  194-5;  198-9;  205-6;  217-222;  273,  276-8,  280-1.) 

Lustron's  purchase  of  tlie  housing  article  which  Senator  McCarthy 
unsuccessfully  attempted  to  sell  to  other  publishers  the  previous  March 
and  April,  was  attributed  by  him  to  the  fact  that  Lustron  gave  him 
"the  most  favorable  contract".  (See  Congressional  Record,  June  19, 
1950,  vol.  96,  No.  120,  pp.  A4764-4771,  wherein  Senator  McCarthy 
inserted  the  housing  article,  his  correspondence  with  several  publishers, 
and  his  version  of  the  Lustron  phase.) 

To  appreciate  the  urgency  of  the  hasty  negotiations  with  Lustron 
to  obtain  a  $10,000  fee  on  November  12,  1948,  it  is  essential  that  we 
consider  Senator  McCarthy's  over-extended  debt  position  at  the  Apple- 
ton  State  Bank,  which  became  quite  desperate  during  September 
through  November  of  1948.  Although  the  Bank  had  notified  him 
that  it  was  essential  that  his  total  bank  debt  of  $72,943.96  be  reduced, 
or  his  collateral  liquidated  (see  supporting  letters,  Exhibits  49-54), 
Senator  McCarthy  did  not  use  the  Lustron  fee  for  this  purpose  but 
bought  stock  with  it  which  he  pledged  as  additional  collateral  for  the 
loan.  The  Lustron  check  for  $10,000,  dated  November  12, 1948,  issued 
to  "'Joseph  R.  McCarthy,"  was  endorsed  in  blank  over  to  Wayne, 
Hummer  &  Co.,  the  Senator's  broker  (Exhibit  55)  to  purchase  addi- 
tional stock  of  the  Seaboard  Airlines  Railroad. 

It  may  or  may  not  be  significant  that  the  Seaboard  Airlines  Railroad 
was  also  financed  by  the  RFC  and  at  the  time  indebted  to  RFC  in 
excess  of  $15,000,000.  Our  inquiry  developed  that  during  October 
of  1948,  Senator  McCarthy  purchased  1,500  shares  of  Seaboard  com- 
mon stock  at  an  average  price  of  $22  per  share;  that  this  railroad  had 
been  in  receivership  since  1930,  came  out  of  reorganization  in  1946  to 
be  operated  under  a  voting  trust  arrangement  through  April  1,  1951, 
and  that  the  Lustron  $10,000  fee  was  used  to  increase  his  Seaboard 
holdings  to  1,950  shares.  These  holdings  were  pledged  by  Senator 
McCarthy  to  support  his  Appleton  bank  loans.  While  it  is  not  known 
whether  Senator  McCarthy's  information  with  respect  to  this  stock 
had  anything  to  do  with  his  position  as  a  United  States  Senator,  it  is 
interesting  to  note  that  Senator  McCarthy  suggested  speculation  in 
Seaboard  stocks  to  others.  (See  letters  dated  December  16,  1948, 
and  January  5,  March  2,  and  March  10,  1949,  annexed  hereto  as 
Exhibits  56-59.) 

Our  inquiry  developed  information  which  reflected  that  at  the  time 
of  Senator  McCartliy's  purchases  of  Seaboard  stock,  it  did  not  appear 
to  an  "outsider,"  or  to  the  uninformed,  to  be  either  a  good  investment 
or  speculation,  particularly  since  no  dividends  had  been  declared  since 
long  prior  to  receivership  in  1930,  and,  further,  because  the  common 
stock  was  encumbered  by  the  voting  trust  agreement. 

Although  the  depreciation  of  the  stock  market  had  its  consequent 
effect  upon  his  pledged  collateral,  and  Senator  McCarthy  was  obliged 
to  sell  250  shares  of  Seaboard  in  1949  and  1950  at  a  loss,  he  resisted 
the  bank's  suggestion  that  the  balance  be  liquidated,  and  on  August 
25,  1950  (Exhibit  60),  advised  the  Appleton  State  Bank  that  he  had 
checked  with  some  of  the  Directors  (not  otherwise  identified),  who 
advised  against  the  sale.     Senator  McCarthy  held  1,700  shares  until 


18 

tlie  EFC  had  disposed  of  its  Senboard  lioldin<js  and,  on  Septeinbev 
12,  1951,  he  sold  1,000  shares  for  a  net  profit  of  $35,614.75.  After 
liquidating  the  bank  debts  of  $45.21-1.40  and  a  $14,016.31  loan  from 
G.  J.  Sensenbrenner,  $1,346.16  was  remitted  to  him.  Pursuant  to  his 
request  of  October  3,  1951  (Exhibit  61),  the  bank  returned  the  re- 
mainin,":  700  shares  of  Seaboard  to  Senator  McCarthy  on  October  5. 
1951  (Exhibit  62). 

Seaboard  was  quoted  recently  on  the  New  York  Stock  Exchange 
at  $113. 

The  Subcommittee  extended  to  Senator  McCarthy,  on  May  7,  1952, 
the  opportunity  to  appear  at  the  scheduled  open  hearings  on  Lustron 
for  the  purpose  of  presenting  testimony  relating  to  this  specific 
charge,  as  to  the  Lustron  fee.  He  ignored  the  invitation  but  in 
a  sardonic  letter  dated  May  11,  1952  (Exhibit  21),  he  discussed  the 
Subcommittee's  misfortune  in  being  deprived  of  its  "star  witness." 
(The  person  referred  to  was  Robert  Byers,  Columbus,  Ohio  builder^ 
who  apparently  just  prior  to  the  Subcommittee's  May  1952  hearings 
had  a  breakdown. )    Senator  McCarthy  stated : 

If  only  you  had  set  the  hearings  10  days  earlier  before  the  Judge  committed 
your  star  witness  to  an  institution  for  the  criminally  insane,  you  would  not  have 
been  deprived  of  this  important  link  in  the  chain  of  evidence. 

It  was  this  same  Robert  Byers  who,  under  questioning  by  Senator 
McCarthy,  at  a  Joint  Committee  on  Housing  hearing  at  Washington, 
D.  C.  on  January  15,  1948  (the  same  day  Carl  Strandlund  was  testi- 
fying before  the  Senate  Banking  and  Currency  Committee  as  indi- 
cated above)  recommended  a  thorough  investigation  of  Lustron 
(Part  5,  pp.  5912-3,  Joint  Committee  on  Housing,  80th  Congress). 
Our  inquiry  failed  to  develop  any  indication  that  action  was  taken  on 
iNIr.  Byers'  recommendation.  It  was  also  the  same  Robert  Byei^  who 
engaged  Senator  McCarthy  on  two  separate  occasions  to  appear  at 
promotional  dinners  at  Columbus,  Ohio,  for  a  fee  of  $500  and  expenses 
in  connection  with  the  Byers'  Housing  Project  (see  testimony  of 
Clark  Wideman,  Public  Relations  Counsel  for  the  Byers'  firm  at  Sub- 
committee's hearing  of  5/15/52,  pp.  258,  260-2) .  It  would  also  appear 
to  be  the  same  Robert  Byers  to  whom  Senator  McCarthy  referred  on 
page  5  of  his  individual  report  to  the  Joint  Committee  on  Housing, 
as  follows : 

The  main  outstanding  example  of  what  a  builder  of  conventional  houses  can  do 
was  found  in  Cohraibus,  Ohio  where  very  attractive  Veterans  houses  are  being 
built  in  sizable  quantities  to  be  sold  at  approximately  $4,000. 

From  such  facts  the  obvious  questions  which  suggest  themselves, 
particularly  in  the  absence  of  any  explanation  from  Senator  Mc- 
Carthy, are : 

Are  there  other  instances  where  Senator  McCarthy  received  some 
consideration  from  persons  or  agencies  that  he  was  in  a  position  to 
assist  or  hurt  in  his  official  position  as  a  United  States  Senator? 

How  can  Senator  ^IcCarthy  justify  acceptance  of  a  $10,000  fee 
from  Lustron,  wliich,  in  effect,  was  a  fee  being  paid  out  of  public 
funds,  at  a  time  when  Lustron's  continued  operations  and  financing 
depended  entirely  upon  the  RFC,  and  which  Agency,  in  turn,  was  de- 
pendent upon  the  Congress  and,  more  particularly,  the  Banking  and 
Currency  Committee,  of  which  has  was  a  member,  for  its  continued 
authority  and  operation  ? 


19 

Did  Senator  IMcCartliy  take  advantage  of  Lustron's  sensitive  posi- 
tion and  its  need  for  continued  government  financing  to  induce  its 
president,  Carl  Strandlund,  to  pay  a  fee,  set  by  him  at  $10,000,  for  a 
manuscript  which  was  neither  finished  or  in  publishable  form,  with- 
out any  prior  consultation  with  Lustron'spublic  relations  or  executive 
staff  and  without  notification  to  the  KFC? 

Was  there  any  connection  between  Senator  McCarthy's  recommen- 
dations for  government  aid  to  pre-fab  manufacturers  and  his  subse- 
quent contacts  with  Lustron,  which  culminated  in  his  receiving 
$10,000  for  the  sale  of  his  manuscript  ? 

Was  there  any  relationship  between  Senator  McCarthy's  position 
as  a  member  of  the  Senate  Banking  and  Currency  Committee  and  his 
receipt  of  confidential  information  relating  to  the  stock  of  the  Sea- 
board Airlines  Railroad,  which  was  indebted  to  the  RFC  for  sums 
in  excess  of  $15,000,000  ^ 

Does  Senator  McCarthy  consider  that  his  requests  for  the  active 
assistance  of  the  HHFA  in  the  preparation  of  a  housing  manuscript, 
which  he  intended  to  sell,  after  he  had  recommended  legislation  to 
increase  the  salary  of  its  Administrator,  to  be  ethical  ? 

Whether  Funds  Supplied  to  Senator  McCarthy  to  Fight  Commu- 
nism or  for  Other  Specific  Purposes  Were  Diverted  to  His  Own 
Use 

Senator  Joseph  R.  McCarthy,  according  to  his  own  statement,  as 
set  forth  in  his  publication  entitled,  "McCarthyism — The  Fight  for 
America*',  published  in  1952,  "launched  the  public  phase"  of  his  fight 
"to  expose  Communists  and  Communist  treason  in  Government",  on 
February  9, 1950,  at  Wheeling,  W.  Va. 

Subsequent  to  this,  there  was  widespread  publicity  concerning  Sen- 
ator McCarthy's  activities  and  reportedly  some  news  commentators 
suggested  that  their  listeners  send  contributions  to  assist  the  Senator. 

The  Subcommittee  received  unconfirmed  reports  that  Senator  Mc- 
Carthy's office  received  a  substantial  number  of  contributions,  somo 
of  which  at  least  he  was  using  for  his  own  benefit  and  unrelated 
activities. 

It  was  for  this  reason,  therefore,  that  the  Senator  was  asked  in  the 
Subcommittee's  letter  of  November  21,  1952  (Exhibit  41),  whether 
any  funds  collected  or  received  to  conduct  activities,  including  those 
related  to  "Communism,"  were  ever  diverted  and  used  for  other  pur- 
poses inuring  to  his  personal  advantage.  His  answer  to  this  query, 
as  contained  in  his  letter  of  December  1,  1952  (P^xhibit  45),  was  "No". 
Senator  McCarthy  not  having  made  himself  available  for  further 
explanation  concerning  these  matters,  the  Subcommittee  is  obliged  to 
report  the  results  of  the  investigation  conducted  in  this  regard. 

The  Bentley-Van  Straten  transaction 

On  May  5,  1950,  Senator  McCarthy  opened  a  special  checking 
account  at  the  Riggs  National  Bank,  Pennsj'lvania  Avenue  at  15th 
Street  NW.,  Washington,  D.  C.  At  this  time,  he  also  maintained  a 
regular  checking  account  at  the  same  institution.  These  accounts  will 
be  referred  to  later  in  the  report  and  as  will  be  indicated,  the  Subcom- 
mittee has  reason  to  believe  that  the  special  account  v.-as  opened  and 
used  by  Senator  ^IcCarthy  as  a  depository  of  funds  received  for  anti- 
communist  activities. 


20 

However,  on  September  7,  1950,  Senator  McCarthy  opened  sav- 
ings account  No.  62950  with  the  National  Savings  and  Trust  Com- 
pany, Washington,  D.  C.  (Exhibit  64),  by  depositing  $10,500.  This 
deposit,  represented  by  a  deposit  ticket  dated  September  7,  1950  (Ex- 
hibit 65),  consisted  of  $500  in  currency,  a  $7,000  check  drawn  on  a 
District  of  Columbia  bank,  and  a  check  for  $3,000  drawn  on  a  Mich- 
igan bank.  Investigation  developed  that  the  $3,000  item  was  a  check 
drawn  bv  Alvin  M.  Bentley  on  The  Manufacturers  National  Bank  of 
Detroit  dated  September  5,  1950  (Exhibit  66).  The  $7,000  check  was 
traced  to  tlie  Riggs  National  Bank,  Dupont  Branch,  account  of  ]\Irs. 
Arvilla  P.  Bentley  (Exhibit  67).  The  source  of  tlie  $500  in  currency 
is  not  known,  but  it  might  be  significant  that  a  check  for  $500  issued  to 
cash  was  charged  to  the  special  account  of  Joe  McCarthy  with  the 
Riggs  National  Bank  on  September  5,  1950.  This  account  will  be 
referred  to  later  in  the  report. 

When  interviewed  in  Owosso,  Mich.,  on  October  29,  1952,  by  an 
investigator  for  the  Subcommittee,  Mr.  Alvin  M.  Bentley  declared 
that  he  issued  his  check  to  Senator  McCarthy  to  assist  him  in  his  fight 
against  communism  in  government,  but  declared  that  at  Senator  ^Ic- 
Carthy's  suggestion,  the  amount  was  considered  a  loan  rather  than 
a  gift  and  tliat  he  took  Senator  McCarthy's  five-year  note  as  evi- 
dence of  the  indebtedness.  He  advised  he  believed  the  note  was  non- 
interest  bearing.  Mr.  Bentley  declared  that  there  was  no  agreement 
as  to  the  manner  in  which  the  funds  were  to  be  disbursed;  that  Sen- 
ator McCarthy  would  not  have  accepted  the  money  if  there  had  been 
any  conditions  attached;  and  that  he  (Bentley)  did  not  care  how 
the  money  was  expended  so  long  as  it  was  expended  in  furtherance 
of  the  anti-comnumistic  fight.  Mr.  Bentley  volunteered  further  that 
lie  would  be  disappointed  if  he  later  learned  that  Senator  ]\IcCarthy 
"had  used  the  money  for  gambling  or  to  advance  his  personal  financial 
condition." 

On  Wednesday,  November  26, 1952,  investigators  of  the  Subcommit- 
tee attempted  to  interview  Mrs.  Arvilla  P.  Bentley  at  her  home  in 
Washington,  D.  C,  by  telephone,  but  she  declared  that  she  was  con- 
fined to  her  home  by  illness  and  her  physician  had  ordered  her  not  to 
see  anyone.  When  asked  if  she  had  ever  given  any  money  to  Senator 
McCarthy,  she  replied  that  she  had  never  given  Senator  INIcCarthy 
any  mone}'  for  political  purposes.  When  she  was  asked  if  she  had  ever 
loaned  inoney  to  Senator  McCarthy,  she  stated  that  she  would  decline 
to  answer  that  question  until  she  had  an  opportunity  to  consult  her 
attorney.  Her  attorney  was  subsequently  interviewed  and  he  advised 
that  he  would  attempt  to  arrange  for  investigators  to  interrogate  Mrs. 
Bentley  on  Monday,  December  1, 1952.  When  Mrs.  Bentley's  attorney 
was  iriterviewed  by  telephone  on  that  date,  he  advised  that  he  had 
Tieen  informed  that  Mrs.  Bentley  had  gone  to  Florida  on  Friday, 
November  28, 1952,  on  the  orders  of  her  physician,  and  that  her  where- 
abouts were  unknown.  Incidentally,  Mrs.  Bentley  also,  on  March  22, 
1951,  issued  her  check  to  Senator  JNIcCarthy  in  the  amount  of  $3,657, 
the  proceeds  of  which  check  were  deposited  in  Senator  ISIcCarthy's 
general  account.  The  Subcommittee  also  desired  to  obtain  some  infor- 
mation regarding  this  payment. 

With  respect  to  the  disposition  of  the  funds  obtained  from  the 
Bentlevs  and  placed  in  this  savings  account,  investigation  revealed 
the  following:  On  September  29,  1950,  approximately  three  weeks 


21 

after  the  savinfjs  account  was  opened.  Senator  McCarthy,  by  letter 
to  the  National  Savino;s  and  Trust  Company  (Exhibit  G8) ,  authorized 
Miss  Jean  F.  Kerr,  his  secretary,  to  withdraw  $10,000  from  the  account. 

The  funds  withdrawn  were  used  to  purchase  a  draft  at  the  same 
bank,  drawn  on  the  Continental  Illinois  National  Bank  and  Trust 
Company  of  Chicago  and  payable  to  Henry  J.  Van  Straten  (Exhibit 
69).  Van  Straten  is  a  long  time  friend  of  Senator  McCarthy  and, 
for  a  number  of  years,  has  been  County  Superintendent  of  Schools  at 
Appleton,  Wisconsin.  The  draft  was  endorsed  by  Henry  J.  Van 
Straten  and  forwarded  to  "Wayne,  Hummer  &  Co.,  and  on  October  3, 
1950,  the  $10,000  was  credited  to  Van  Straten  (Exhibit  70). 

Upon  deposit  of  the  $10,000  with  Wayne,  Hummer  &  Co.,  Van 
Straten  purchased  on  margin  the  following  (Exhibit  70)  : 

Purchase  10/2/50 1.5,000  Ini.  January  Soy  Beans  ^  $2,371/4 

Turchase  10/10/50 5,000  bu.  January  Soy  Beans  (S?  $2.;}9i4 

Purchase  10/19/50 5.000  bu.  January  Soy  Beans  (a^  $2.44 

Purchase  10/27/50 5,000  bu.  January  Soy  Beans  @  $2,571^ 

As  of  November  27,  1950,  unrealized  profit  in  respect  to  the  30,000 
bushels  of  January  Soy  Beans  was  approximately  $17,500;  and  suffi- 
cient to  margin  the  account.  On  that  date,  Wayne,  Hummer  &  Co. 
issued  its  check  #10  to  Henry  J.  Van  Straten  drawn  on  the  First 
National  Bank,  Appleton,  Wisconsin,  for  $10,000  (Exhibit  71).  The 
cheik  was  endorsed  to  Joe  McCarthy  and  deposited  by  Senator 
McCarthy  in  his  general  account  at  the  Kiggs  National  Bank  on 
December  4,  1950  (Exhibit  72). 

It  is  of  interest  to  note  the  market  action  of  January  soy  beans 
futures  in  connection  with  Van  Straten's  speculation  in  that  com- 
modity. From  a  high  of  $2.63  per  bushel  on  August  1, 1950,  the  trend 
was  downward  until  the  last  week  in  September  when  the  market 
appeared  to  firm  at  from  $2,351/2  to  $2,381/2.  The  market  fluctuated 
the  first  two  weeks  in  October  and  dropped  to  $2.30  on  October  14, 
1950.  Thereafter,  the  trend  was  steadily  upward  and,  on  November 
18,  1950,  January  soy  bean  futures  were  quoted  at  $2.96i/i-$2.95i/^. 

On  December  13,  1950,  20,000  bushels  of  January  soy  beans  were 
sold  at  a  profit  of  $11,265.50  (Exhibit  70),  and  on  January  2,  1951, 
10,000  bushels  were  sold  at  a  profit  of  $6,089  (Exhibit  73),  or  a  total 
realized  profit  of  $17,354.50.  On  December  19, 1950,  Wayne,  Plummer 
&  Co.  issued  its  check  to  Van  Straten  for  $1,500.00  (p:xhibit  74),  and 
on  January  16,  1951,  issued  its  check  for  $3,000  (Exhibit  75).  The 
proceeds  of  the  check  for  $1,500  and  $2,600  of  the  proceeds  of  the 
check  for  $3,000  were  deposited  in  Van  Straten's  account  with  the 
Appleton  State  Bank  (Exhibits  76-77) .  On  February  1, 1951,  a  check 
for  $2,365.38,  in  payment  of  the  balance  due  on  Van  Straten's  Federal 
Income  Taxes  for  1950,  was  charged  to  his  Appleton  State  Bank 
account,  and  on  April  10, 1951,  a  check  for  $839.41,  being  Van  Straten's 
Wisconsin  state  income  tax  payment  for  1950,  was  charged  to  the 
Appleton  State  Bank  account.  (See  Van  Straten's  ledger  sheets, 
Exhibit  78.) 

There  was  a  balance  of  $12,854.50  left  in  the  trading  account,  which 
was  used  for  furtlier  commodity  speculation  and  which  resulted  in 
losses  of  $2,740.89  between  March  1,  1951,  and  the  time  when  the 
account  was  examined  on  August  11,  1952.  Net  cash  withdrawals  of 
$4,375.16  during  this  period,  left  a  cash  balance  of  $5,738.45  in  the 
account  as  of  the  August,  1952  date. 


22 

All  of  the  cash  withdrawn  from  this  account,  which  was  transferred 
to  Goodbody  &  Co.,  with  the  exception  of  the  $10,000  traced  to  Senator 
McCarthy's  account,  was  deposited  in  Van  Straten's  account  with  the 
Appleton  State  Bank  (See  Van  Straten's  ledger  sheets,  Exhibit  78), 
but  the  final  disposition  of  this  cash  is  not  known  to  the  Subcommittee. 

When  Van  Straten  was  interrogated  by  a  Subcommittee  investigator 
in  regard  to  the  $10,000  market  operation,  he  declared  that  the  money 
used  was  his  own  and  that  the  trading  decisions  were  the  result  of  his 
own  interpretation  of  market  conditions.  When  informed  that  infor- 
mation indicated  that  the  $10,000  used  to  open  the  commodity  ac- 
count on  October  3,  1950,  was  not  his.  Van  Straten  stated  that  he 
considered  borrowed  money  his  personally  owned  funds,  but  declined 
to  give  further  information. 

The  result  of  speculative  operations  of  Van  Straten  which  were 
financed  by  himself,  as  contrasted  with  the  result  of  the  transaction 
financed  by  Senator  McCarthy,  should  be  noted.  On  November  23, 
1945,  Van  Straten  opened  a  securities  trading  account  with  Wayne, 
Hummer  &  Co.,  and  on  November  18,  1946,  he  opened  a  securities 
trading  account  with  Paine,  Webber,  Jackson  &  Curtis.  His  trading 
operations  in  securities,  as  reflected  by  these  accounts,  through  April 
30,  1952,  resulted  in  a  loss  of  $3,196.29  (Exhibit  79).  Van  Straten 
opened  a  commodity  trading  account  with  Paine,  Webber,  Jackson  & 
Curtis  on  August  28,  1951.  The  result  of  trading  in  commodities 
through  this  account  to  April  28,  1952,  resulted  in  a  loss  of  $3,172.50 
(Exhibit  80) .  Van  Straten  oj^ened  a  commodity  trading  account  with 
Wayne,  Hummer  &  Co.,  on  September  8,  1949,  and  closed  it  on  July 
27,  1950.  Trading  in  this  account  during  that  period  resulted  in  a 
loss  of  $675.65  (Exhibit  81).  In  contrast  to  these  losses  totaling 
$7,043.27,  a  profit  of  $17,354.50  was  made  between  October  3,  1950, 
and  January  2, 1951,  on  the  transactions  financed  by  Senator  McCarthy 
with  money  obtained  from  the  Bentleys. 

In  view  of  the  above  facts  the  following  questions  remain  un- 
answered : 

Why  would  Senator  McCarthy  borrow  money  for  his  fight  against 
communism,  as  indicated  by  Mr.  Alvin  Bentley,  the  source  of  $3,000 
of  the  $10,000  involved,  for  the  purpose  of  depositing  it  in  a  savings 
account  ? 

Was  the  $7,000  obtained  from  Mrs.  Bentley  on  the  same  date  also 
to  aid  Senator  McCarthy  in  his  alleged  anti-communistic  fight  ? 

Was  the  $3,657.00  obtained  from  Mrs.  Bentley  in  March  1951,  and 
deposited  by  Senator  McCarthy  in  his  general  account  on  March  28, 
1951,  for  the  same  purpose  and,  if  so,  why  was  it  deposited  in  his 
general  account? 

Did  Senator  McCarthy  give  Mrs.  Bentley  notes  for  the  monies 
obtained? 

Why  did  Senator  McCarthy  give  Mr.  Alvin  Bentley  a  five-year 
non-interest-bearing  note  for  $3,000,  when  Mr.  Bentley  was  willing  to 
donate  that  amount  and  did  it  have  any  bearing  with  respect  to  the 
payment  of  future  income  taxes? 


23 

If  Senator  McCarthy  obtained  at  least  $3,000  of  the  $10,000  in- 
volved, as  reported  by  Mr.  Rentley,  for  his  anti-communistic  fight,  was 
not  this  money,  in  a  sense,  a  trust  fund  '. 

AVas  the  $10,000  Van  Straten  con)modity  speculation  actually  for 
the  benefit  of  Senator  McCarthy,  or  a  partnership  account? 

Why  would  Senator  McCarthy  speculate  with  funds  advanced  to 
him  for  his  anti-communistic  drive,  or  loan  such  funds  to  a  friend 
for  speculative  puri)oses,  particularly  when  the  friend's  only  expe- 
I'ience  in  the  commodity  market  was  limited  and  unsuccessful? 

Did  Senator  Mc(\irthy  have  confidential  information  with  re- 
spect to  the  trend  of  the  soybean  future  market?  (Just  prior  to  the 
transaction  in  question,  the  Commodity  Exchange  Authority  of  the 
Department  of  AgricuUure  conducted  an  investigation  of  alleged  soy- 
bean nuirket  manipulation  involving,  among  others,  a  number  of 
Chinese  traders.) 

"Was  the  $10,000  Wayne  Hununer  &  Co.  check,  dated  November 
27,  1950,  which  Van  Straten  endorsed  over  to  Senator  McCarthy  a 
return  of  the  original  investment  and,  if  so,  why  was  it  deposited  in 
Senator  McCarthy's  general  account? 

Senator  McCarthy's  special  account 

As  previously  stated,  Senator  McCarthy,  on  May  5,  1950,  opened  a 
special  checking  account  at  the  Riggs  National  Bank.  The  opening 
deposit  in  this  Special  Account  was  in  the  total  amount  of  $1,292.00 
and  consisted  of  $35.00  in  cash  and  various  checks  (45)  totaling 
$1,257.00. 

Subsequently,  the  following  additional  deposits  were  made  in  this 
special  account.  The  total  of  each  deposit,  the  amount  of  cash  in- 
cluded in  each  deposit,  the  total  and  number  of  checks  in  each  de- 
posit, are  as  follows : 

Checks  and  monry  orders  Total 

Date  deposit  made  •  Cash  Amount  Number  deposit 

May   8.    1950 $147.00  .$430.00  35  .$577.00 

May    11,    1950 70.00  1,692.20  62  1,762.20 

May   16,   19.50 1,312.00  03  1,312.00 

Mav   19.   1950 2.00  1  2.00 

May   23,   1950 1.00  1  1.00 

May   26,   19.50 1,  517.  .50  21  1,517.50 

June  2,  1950 866.37  26  866.37 

June  15,  19.50 413.  .50  26  413.  .50 

June  20,  19.50 2,096.00  19  2,096.00 

June  23,  19.50 908^00  19  908.00 

.Tulv   .3.    19.50 58.5.00  6  585.00 

Julv   11,  19.50 861.00  9  861.00 

Jnlv   24,   19.50 1,527.00  13  1,527.00 

Aug.   10,   19.50 1.00  44.3.65  20  444.65 

Sept.  11,  1950 207.50  14  207.50 

Oct.  3.  19.50 5S.3. 19  27  583. 19 

Nov.  20,  19.50 61.61  120.00  13  184.61 

Dec.  20,  19.50 30.00  2,58.00  17  288.00 

Jan.  11,  19.51 100.00  19.5.00  13  29.5.00 

Jan.  22.  1951 1,075.00  3  1,075.00 

Feb.  20,  1951 131.. 50  8  131.. 50 

Mar.  1,  1951 10.00  50.  (tO  1  60.00 

Apr.  18,  19.51 71.00  5  71.00 

May  28,   19.51 25.  OU  3  2.5. 00 

June  18,  19.51 60.00  3  60.00 

Account  closed  as  of  June  20,  1951,  and  then  reopened  Aug.  24,  19.51. 


24 


Date  deposit  made  Cash 

Aug.  24,   1951 

Sept.  3,  1951* 

Oct.  23,  1951 56.  00 

Dec.   5,   1951 14.00 

Jan.   14,  1952 17.00 

Account  closed  as  of  Mar.  4,  1952,  and 

Mar.  17,  1952 $28.00 

May  5,  1952 22.  00 

May  19,  1952 

May  26,  1952 28.00 

July   15,  1952 2.20 

Aug.  4,  1952 

Aug.  11,  1952 6.00 

Aug.  11,  1952 6.00 

Sept.  3,  1952 15.  00 

Since  the  inception  of  this  Special  Account  the  following  total  de- 
posits were  made  therein : 

1950 $15,  428.  52 

2951 2  591, 75 

1952  "(up  to  11/4/52 )  _IIII__II__IIII"_"I_~I1I__~ _I "IIIIII  2,  l\i.  70 


Checks  and 

monej 

orders 

Total 

Amount 

Number 

deposit 

$269.  00 

16 

$269.  00 

170.  00 



170. 00 

245.00 

5 

301.00 

120.  25 

9 

134.  25 

69.00 

8 

86.00 

1  reopened  Mar. 

17, 1952. 

$740.  00 

3 

$768.  00 

83.50 

11 

105.50 

75.00 

3 

75.00 

60.00 

3 

88.00 

7.50 

2 

9.70 

35.00 

1 

35.00 

50.00 

2 

56.00 



6.00 

200.00 

12 

215.  00 

Total $20,  732.  97 


Of  these  deposits,  $693.81  was  in  cash;  the  remainder  in  checks 
and/or  money  orders. 

Considering  the  proximity  of  the  date  on  which  this  special  account 
was  opened,  May  5,  1950,  to  that  of  February  9,  1950,  when  Senator 
McCarthy  began  the  so-called  "public  phase"  of  his  fight  against 
communism,  and  considering  the  types  of  deposits  made  therein,  it  is 
believed  logical  to  assume  that  the  account  was  opened  and  used  as  a 
depository  for  funds  received  by  Senator  McCarthy  to  finance  anti- 
communists  activities.  This  assumption  was  enhanced  by  information 
supplied  by  the  makers  of  two  of  the  larger  checks  included  in  the 
aforementioned  deposits. 

The  deposit  of  May  11,  1950  (Exhibit  82),  included  a  check  dated 
May  8,  1950,  in  the  amount  of  $1,000.00  drawn  on  the  Lee  County 
Savings  Bank,  Fort  Madison,  Iowa,  and  signed  "C.  R.  Sheaffer,  by  L. 
J.  Frantz".  An  interview  was  had  with  Leonard  J.  Frantz,  the  actual 
maker  of  the  aforedescribed  check.  Mr.  Frantz  identified  himself  as 
Secretary  of  the  W.  A.  Sheaffer  Pen  Company,  Fort  Madison,  Iowa, 
and  also  identified  C.  R.  Sheaffer  as  Craig  R.  Sheaffer,  President  of 
the  same  company.  According  to  Mr.  Frantz,  he  had  never  met  Sen- 
ator McCarthy.  It  was  his  opinion  that  Mr.  Sheaffer  had  also  never 
met  the  Senator.  He  stated  that  Mr.  Sheaffer  had  read  newspaper 
accounts  of  "McCarthy's  attack  on  communists  in  Government",  and 
had  written  the  Senator  on  May  1, 1950,  commending  the  latter's  efforts. 
Frantz  also  said  that  Mr.  Sheaffer  had  offered,  in  his  letter  of  May  1,  to 
send  Senator  McCarthy  $1,000,  if  he  needed  it  and  providing  that  it 
would  not  be  embarrassing  for  him,  McCarthy,  to  accept  it.  Senator 
McCarthy,  Frantz  said,  answered  Mr.  Sheaffer's  communication  by 
letter  dated  May  4,  1950.  In  this  reply,  McCarthy  informed  Sheaffer 
that  he  did  have  a  lot  of  expenses  in  connection  with  his  anti-commu- 
nistic fight  and  would  appreciate  financial  assistance.     Thereafter, 


i 


25 

Frantz,  on  the  instructions  of  Mr.  Sheaffer,  issued  and  sent  to  Senator 
McCarthy,  Mr.  Sheaffer's  personal  check  for  $1,000,  Frantz  related 
tliat  Mr.  SheatFer  had  not  made  any  additional  contributions  to  Sena- 
tor McCarthy,  nor  had  he  received  any  further  requests  for  funds. 
Frantz  said  that  Mr.  Shealfer,  in  giving  the  money,  did  not  specify  as 
to  how  it  was  to  be  expended.  In  conclusion,  Mr.  Frantz  informed 
that  Mr.  Sheaffer  was  not  generally  active  in  "anti-Communist  work" 
and  had  contributed  to  Senator  McCarthy  because  of  the  newspaper 
publicity  the  latter  was  receiving  at  the  time. 

The  deposit  of  June  23,  1950  (Exhibit  83),  included  a  check  for 
$500  drawn  by  ''B.  Peyton"  on  the  Guaranty  Trust  Company,  Fifth 
Avenue  Ollice,  New  York,  N.  Y.  "B.  Peyton"  was  subsequently 
identified  as  Bernard  Peyton,  President,  New  York  Air  Brake  Com- 
pany, 420  Lexington  Avenue,  New  York,  N.  Y.  When  interviewed, 
Mr.  Peyton  advised  to  the  following  effect : 

He  tirst  met  Senator  McCarthy  at  a  "businessmen's  association" 
meeting,  and  was  very  much  impressed  with  the  Senator  as  a  speaker. 
Following  the  Senator's  speech,  he  asked  Senator  McCarthy  how  he 
could  help,  and  the  Senator  replied  that  he  could  use  contributions  to 
run  down  the  "rascals  and  communists  in  Government".  A  day  or  so 
later,  on  June  21,  1950,  Peyton  mailed  Senator  McCarthy  a  check, 
drawn  on  the  Guaranty  Trust  Company  of  New  York  City,  in  the 
amount  of  $500. 

Interviews  with  persons  who  were  identified  from  checks  deposited 
in  Senator  ^IcCarthy's  special  account  were  limited  to  the  above.  The 
makers  of  other  checks  deposited  in  this  account,  whose  identities  have 
been  established,  are  retained  in  subcommittee  files. 

The  ledger  sheets  and  deposit  tickets  of  this  special  account  are 
attached  as  Exhibit  84  and  Exhibit  85. 

From  the  investigation  to  date,  there  has  been  no  indication  as 
to  what  percentage  of  the  funds,  obtained  by  Senator  McCarthy  for 
his  so-called  anti-Communist  activities,  were  deposited  in  this  special 
account  at  the  Riggs  Bank;  whether  other  deposits  in  the  savings 
account  established  at  the  National  Savings  and  Trust  Company  were 
of  this  nature;  whether  there  were  other  bank  acocunts,  not  known, 
so  employed;  or  whether  any  such  funds  were  deposited  in  Senator 
McCarthy's  other  known  general  accounts  or  in  the  bank  accounts  of 
his  associates. 

An  attempt  was  made  to  examine  every  check  which  had  been  issued 
from  the  special  account  of  Senator  McCarthy  at  the  Riggs  National 
Bank.  However,  checks  charged  to  the  account  prior  to  August  28, 
1950  were  not  available.  The  account,  it  will  be  recalled,  was  opened 
May  5,  1950.  Further,  of  the  checks  charged  subsequent  to  August 
28,  1950,  some  could  not  be  located  by  the  Bank,  some  were  illegible 
and  the  payees  could  not  be  determined. 

There  were  a  total  of  approximately  180  items  charged  against  this 
special  account,  but  only  78  of  these  items  could  be  identified.  As  was 
previously  pointed  out,  the  greater  part  of  the  items  either  were  not 
available  or  were  illegible. 

Even  though  Senator  McCarthy  has  refused  to  cooperate  with  the 
Subcommittee,  the  list  of  the  payees  of  these  checks  is  not  being  in- 
cluded in  this  report — lest  it  be  said  that  an  attempt  was  being  made 
to  expose  Senator  McCarthy's  method  of  operations  and  his  inform- 
ants.   However,  at  least  without  explanation,  no  connection  could  be 


26 

established  between  many  of  the  disbursements  from  this  account  and 
any  possible  anti-communist  campaign,  including,  for  example,  a 
check  to  the  Collector  of  Internal  Revenue  for  $73.80  on  October  2, 
1950,  at  a  time  when  Senator  McCarthy's  Riggs  general  account  ap- 
pears to  have  been  overdrawn ;  a  check  to  his  Administrative  Assistant, 
Ray  Kiermas,  for  $1,300  on  September  29,  1950,  at  a  time  when  his 
general  account  reflected  a  balance  of  $495.76 ;  a  "Cash"  check  of  $200 
on  October  20,  1950,  when  it  appears  his  general  account  was  over- 
drawn ;  and,  as  indicated  previously  in  this  report,  a  check  for  $500  to 
"Cash",  charged  to  the  special  account  on  September  5,  1950,  which 
cash  apparently  was  deposited  in  his  savings  account  at  the  National 
Savings  and  Trust  Company. 

It  is  of  possible  significance  that  the  deposits  to  Senator  McCarthy's 
general  account  at  the  Riggs  National  Bank  and  the  deposits  to  the 
account  of  his  Administrative  Assistant,  Ray  Kiermas,  at  the  same 
Bank,  increased  contemporaneously  with  the  advent  of  the  "public 
phase"  of  Senator  McCarthy's  "fight"  to  expose  communists  and 
communist  treason  in  Government. 

McCarthy — 
Regular  Special  Kiermas 

1949 $31, 260.  06             $11, 194.  70 

1950 34,171.32  .$15,428.52  26,526.90 

1951 34,897.10  2,591.75  27,587.63 

1952 27,851.68  2,712.70  19,000.00 

The  ledger  cards  of  Senator  McCarthy's  general  account  are  at- 
tached as  Exhibit  86  and  those  for  the  account  of  Mr.  Kiermas  as 
Exhibit  87.  The  deposit  slips  and  identified  checks  applicable  to 
each  account  are  retained  in  the  Subcommittee  files. 

The  questions  which  arise  from  all  of  the  above  facts,  are  obvious. 

A  review  of  the  deposits  made  to  the  Special  and  General  Accounts 
indicates  the  definite  possibility  that  Senator  McCarthy  has  received 
contributions  for  purposes  other  than  that  of  assisting  in  his  anti- 
communist  activities.  As  examples,  reference  might  be  made  to  an 
item,  deposited  in  the  Special  Account,  whicli  came  from  B.  C.  Behren. 
The  check  provided  Senator  McCarthy  by  B.  C.  Behren  reflected  the 
notation  "Donation — Investigating  Fund — Office  Expense".  It  could 
have  been  a  contribution  for  purposes  other  than  anti-communist  en- 
deavors. Frank  M.  Porter,  President,  Fain-Porter  Drilling  Company, 
Oklahoma  City,  Okla.,  when  interviewed  November  14, 1952,  reported 
that  he  had  contributed  $500  to  Senator  McCarthy  in  1949  with  "no 
strings  attached"  and  that  the  Senator  could  use  the  money  any  way 
he  saw  fit.  Senator  McCarthy  deposited  the  check  from  ISIr.  Porter 
in  his  Regular  Account  at  Ricgs  National  Bank  on  August  10,  1949. 
(Exhibit  88.) 

In  view  of  the  known  disposition  of  certain  funds,  received  to  fight 
communism,  for  other  purposes  the  question  naturally  arose  as  to 
whether  therfe  were  other  payments  made  to  Senator  McCarthy  for 
special  purposes  which  were  used  by  him  in  some  other  manner. 

Due  to  the  difficult  task  of  tracing  deposits  through  the  bank  rec- 
ords, as  in  the  Special  Account,  only  a  small  percentage  of  the  de- 
posits in  the  General  Account  were  traced  to  their  source.    A  list  of 


27 

such  items  relating  to  the  General  Account,  and  not  mentioned  else- 
where in  this  report,  are  retained  in  the  subcommittee  files. 

Whether  Senator  McCarthy  Used  Close  Associates  and  Members 
of  His  Family  to  Secrete  Receipts,  Income,  Commodity  and 
Stock  Speculation  and  Other  Financial  Transactions  for 
Ulterior  Motives 

In  this  connection  there  lias  already  been  set  forth  the  transactions 
which  Senator  McCarthy  had  with  Henry  J.  Van  Straten  with  funds 
obtained  from  the  Bent  leys. 

Senator  McCarthy''s  1044  primary  campaign  for  the  Setxate 

In  1942,  Senator  jNIcCarthy  ventured  into  the  security  market  with 
a  modest  investment  of  approximately  $2,200.  Through  the  medium 
of  a  40  percent  margin  account  with  Wayne  Hunnner  &  Company, 
Chicago,  111.,  supported  by  sensational  advances  in  security  prices,  he 
was  enabled  to  build  up  his  initial  investment  into  such  substantial 
proportions  that  in  1948  he  realized  a  net  profit  of  $40,561.67.  (For 
a  schedule  reflecting  these  profits,  see  Exhibit  89.)  This  profit  was 
not  withdrawn  by  him  from  his  trading  account  until  1944,  during 
which  vear  he  received  from  Wavne  Hummer  &  Company  approxi- 
mately ^$46,000  (Exhibit  90).  It  appears  that  $11,100  of  this  $46,000 
was  given  to  him  in  Government  bonds  in  lieu  of  cash,  and  $6,000 
was  deposited  to  his  account  at  the  Citizens  State  Bank,  Shawano, 
Wis.  On  October  7,  1944,  an  account  was  opened  with  Dean  Witter  & 
Company,  Los  Angeles,  Calif.,  with  a  deposit  of  $6,250,  and  on  October 
9,  1944,  this  account  was  credited  with  an  additional  $5,000.  Investi- 
gation has  been  unable  to  account  for  the  balance  of  this  approximate 
$46,000. 

Senator  McCarthy  was  a  candidate  for  the  Republican  nomination 
for  United  States  Senator  in  the  primary  election  held  in  Wisconsin 
on  August  15,  1944.  He  was  defeated  by  Senator  Alexander  Wiley. 
''The  Committee  to  Elect  Joseph  R.  McCarthy  to  the  U.  S.  Senate", 
by  Margaret  F.  Hagene,  its  secretary,  filed  affidavits  with  the  Secre- 
tary of  State  of  Wisconsin  on  August  5,  1944,  and  August  18,  1944 
(Exhibit  101),  reflecting  receipts  from  the  following: 

May  12,  1944— iroward  McCarthy  (brother) $1,100.00 

May  12,  1944— Tim  McCarthy  (father) 4,0(i0.  00 

June  14,  1944 — Roman  Kornely  (brother-in-law) 3,000.00 

June  14,  1944— Howard  McCarthy 3. 100.  00 

August  2,  1944— Howard  McCarthy 1,400.00 

August  4,  1944^Howard  McCarthy 5,  OOO  00 

$17,  600.  00 
Others 2,  208. 95 

$19,  808.  95 

In  that  these  relatives  of  Senator  McCarthy  do  not  appear  to  be 
people  of  substantial  means  and  for  the  further  reason  that  Senator 
McCarthy  made  a  profit  on  securities  transactions  in  excess  of  $40,000 
in  1943  (Exhibit  89)  and  withdrew  mo.st  of  these  profits  in  1944  prior 
to  the  August  14  primary  election,  it  might  appear  possible  that  the 


28 

$17,600  allegedly  contributed  by  Senator  McCarthy's  relatives,  were, 
in  fact,  personal  expenditures  of  Senator  McCarthy.  Following  is  a 
list  of  withdrawals  by  Senator  McCarthy  from  Wayne  Hummer  & 
Company  in  1944,  the  ultimate  disposition  of  which  is  unknown: 


1 


March  1,  1944 $500.00 

March  27,  1944 500.  00 

April  10,  1944 500.00 

May  1,  1944 500.00 

May  3,  1944 11,100.00 

May  3,  1944 4,025.55 

May  12,  1944 196.  55 

May  12,  1944 603.  45 

May  24,  1944 1, 000.  Ob 

May  27, 1944 1, 000.  00 


June  6,  1944 2,  000.  00 

June  7,  1944 3,  000.  00 

June  28,  1944 2,  500.  00 

July  6,  1944 1,800.00 

July  10, 1944 5,  500.  00 

July  14, 1944 1,  000.  00 

July  14, 1944 3,  000.  00 

August   7,    1944 200.00 

August  10,  1944 500.  00 

October  6,  1944 653.00 


$40,  078.  55 


In  1944,  Senator  McCarthy  received  $11,100  in  Government  bonds 
and,  during  that  year,  he  deposited  $11,250  with  Dean  Witter  &  Com- 
pany, Los  Angeles.  These  two  items,  together  with  the  $17,600  al- 
legedly contributed  by  his  relatives  to  his  1944  primary  campaign  ap- 
proximates the  total  withdrawals  from  Wayne  Hummer  &  Company 
in  1944,  which  have  not  been  traced.  If  the  payments  totalling  $17, 
600  were  not  those  of  Senator  McCarthy,  it  would  seem  most  unusual 
that  the  Senator  would  have  called  upon  his  relatives  for  financial 
assistance  to  the  extent  indicated  immediately  after  he  had  profited  by 
more  than  $40,000  in  his  market  operations. 

Although  it  would  not  appear  that  Senator  McCarthy  would  have 
permitted  Margaret  F.  Hagene  to  file  an  affidavit  containing  informa- 
tion which  Senator  McCarthy  knew  to  be  false,  it  is  significant  to  note 
that  the  "Committee  to  Elect  Joseph  R.  McCarthy  to  the  U.  S.  Sen- 
ate" reported  that  it  received  $5,100  from  Howard  and  Tim  ^McCarthy 
on  May  12,  1944  (Exhibit  101)  and  the  records  of  Wayne  Hummer  & 
Company  reflect  that  Senator  McCarthy  withdrew  stock  market  profits 
totalling  $17,925.55  between  March  1, 1944,  and  May  12, 1944,  which  are 
not  otherwise  accounted  for.  Included  in  this  total  is  $11,100  which 
was  presumably  used  to  purchase  Government  bonds  in  which  event 
there  is  $6,825.55  remaining  unaccounted  for. 

The  Committee  reportedly  received  $6,100  from  Roman  Kornely  and 
Howard  McCarthy  on  June  14, 1944,  and  the  Wayne  Hummer  &  Com- 
pany records  reveal  that  Senator  McCarthy  withdrew  stock  trans- 
action profits  of  $7,000  between  May  24,  1944,  and  June  7,  1944.  The 
Committee  reportedly  received  $6,400  from  Howard  McCarthy  on  Au- 
gust 2  and  4, 1944,  and  the  records  of  the  broker  disclose  that  between 
June  28, 1944,  and  July  14,  1944,  Senator  McCarthy  withdrew  $13,800 
in  profits.  Although  the  figures  cited  are  not  conclusive,  it  is  singular 
that  on  or  about  the  dates  that  the  Committee  received  amounts  from 
relatives  of  Senator  McCarthy  that  Senator  McCarthy  withdrew  stock 
market  profits  somewhat  in  excess  of  the  amounts  reported  by  the 
Committee. 


29 

It  might  be  of  further  significance  that  the  only  amounts  reported 
as  being  received  from  relatives  of  Senator  McCarthy  in  his  1946 
campaign  for  the  primary  and  general  elections  are : 

Roman  Kornely  (brother  in  law) $50.00 

Howard  McCarthy  (brother) 49.^0 

Olive  Kornely  (sister) 49.50 

Tim  McCarthy  (father) 5G4.  74 

(Exhibits  138  and  140.) 
William  P.  McCarthy  transactions 

William  P.  McCarthy,  a  brother  of  Senator  McCarthy,  is  employed 
in  Chicago,  Illinois,  as  a  truck  driver.  He  resides  in  a  modest  home 
at  1938  Wolfram  Street,  Chicago,  and  appears  to  be  a  man  of  only  mod- 
erate means.  There  is  no  evidence  that  William  P.  McCarthy  had 
any  experience  in  the  commodity  market  prior  to  August  27,  1948. 

On  or  about  August  27,  1948,' William  P.  McCarthy  opened  an  ac- 
count with  Daniel  F.  Rice  &  Company  (Exhibits  111  and  118)  by 
depositing  $10,000,  When  interviewed  on  June  19,  1952,  by  a  Sub- 
conmiittee  investigator,  William  P.  McCarthy  declared  that  the 
$10,000  was  received  by  him  from  Senator  McCarthy,  and  represented 
the  repayment  of  previous  loans  totalling  $7,000  which  he  had  made 
to  Senator  McCarthy  since  1927,  and  $3,000  representing  a  loan  by 
the  Senator  to  him. 

Investigation  revealed  that  the  $10,000  deposited  with  Daniel  F. 
Rice  &  Company  was  comprised  of  three  items:  (1)  a  bank  draft 
drawn  on  Drovers  National  Bank  by  the  Appleton  State  Bank  on 
August  25,  1948,  in  favor  of  Ray  Kiermas  (Senator  McCarthy's  Ad- 
ministrative Assistant)  for  $5,000  (Exhibits  112  and  118) .  This  draft 
was  endorsed  by  Kiermas  to  the  order  of  Daniel  F.  Rice  8c  Company 
for  the  account  of  William  P.  McCarthy;  (2)  check  for  $1,223.72  on 
the  account  of  Rav  Kiermas  at  Riggs  National  Bank,  dated  August 
30,  1948  (Exhibits  113  and  118);  and  (3)  an  item  for  $3,776.28, 
drawn  on  the  Appleton  State  Bank,  which  that  Bank  has  been  un- 
able to  identify. 

William  P.  McCarthy  began  his  market  operations  on  September  23, 
1948,  by  selling  10,000  bushels  of  July  wheat  short  (Exhibit  114). 
That  particular  transaction  resulted  in  a  loss  of  $1,367.50,  but  his 
overall  operations  for  the  i^eriod  lending  December  7,  1948,  resulted 
in  a  profit  of  $2,967.50.  There  were  no  more  trades  prior  to  Febru- 
ary 10,  1949,  at  which  time  $10,000  was  withdrawn  from  the  account, 
leaving  a  balance  in  the  account  of  $2,967.50.  The  $10,000  was  trans- 
ferred by  Daniel  F.  Rice  &  Company  to  the  Appleton  State  Bank 
through  the  Continental  Illinois  National  Bank  and  Trust  Company 
of  Chicago  (Exhibit  115).  Against  this  $10,000,  the  Appleton  State 
Bank  issued  Demand  Certificate  of  Deposit  No.  97257  for  $10,000 
and  this  Certificate  of  Deposit,  together  with  an  additional  $2,613.16, 
was  used  to  purchase  Appleton  State  Bank  Draft  No.  77874,  drawn  on 
Marshall  &  Ilsley  Bank,  Milwaukee,  to  the  order  of  Wayne  Hummer  & 


J.  236027- 


30 

Company  in  the  amount  of  $12,613.10,  dated  March  3,  1949  (Ex- 
hibit 116) .  The  $12,613.10  was  used  to  purchase  500  shares  of  Dana 
Corporation  stock,  which  were  issued  in  the  street  name  of  Goodbody 
&  Co.  (Exhibits  117  and  117A),  and  were  pledged  as  collateral  for 
Senator  McCarthy's  loan  at  the  Appleton  State  Bank. 

William  P.  McCarthy  permitted  the  aforementioned  balance  of 
$2,967.50  to  remain  inactive  in  the  Daniel  F.  Rice  &  Company  trading 
account  from  December  7,  1948,  until  December  5, 1949  (Exhibit  118) , 
despite  the  fact  that  he  had  an  interest-bearing  savings  account  at 
the  First  National  Bank  in  Chicago.  On  December  5,  1949,  William 
P.  McCarthy  purchased  10,000  bushels  of  May  corn  on  margin,  which 
was  sold  on  December  13,  1949,  at  a  profit  of  $82.50.  There  were  no 
trades  until  late  in  1950,  so  all  through  1950  there  was  a  balance  in 
the  account  of  $3,050. 

On  January  29,  1951,  William  P.  McCarthy  deposited  $2,000  with 
Daniel  F.  Rice  &  Company,  which  amount  was  withdrawn  from  his 
savings  account  with  the  First  National  Bank  in  Chicago  on  that  date 
(Exhibit  119  and  Exhibit  126) . 

Of  possible  significance  in  connection  with  this  deposit  are  unex- 
plained transactions  in  this  savings  account  of  William,  which  appear 
to  be  direct  transfers  of  cash  from  Senator  McCarthy  and  are  as 
follows : 

Deposits  by  William  P.  McCarthy : 

Date :  Amount 

February  20,  1950 $75.00 

April  24,  1950 —  75.  00 

Mav  22,  1950 75.  00 

June  26,  1950 75.  00 

July  17,  1950 75.  00 

July  17,  1950 75.  00 

July  17,  1950 75.  00 

September  25,  1950 750.00 

September  25.  1950 750.00 

$2,  025.  00 

Shortly  after  each  of  the  above  dates,  similar  amounts  were  charged 
to  the  general  account  of  Senator  McCarthy  at  the  Riggs  National 
Bank  (Exhibit  86).  It  should  be  noted  that  the  deposit  by  William 
with  Daniel  F.  Rice  &  Company  of  the  $2,000  after  receiving  the  above 
$2,025.00,  appears  to  be  the  only  time  that  William  took  money  from 
his  savings  account  to  play  the  market. 

Trading  between  December  22,  1950,  and  March  8,  1951,  resulted 
in  a  profit  of  $2,109.00  and,  as  of  March  8,  1951,  William  had  a  credit 
balance  with  Daniel  F.  Rice  &  Company  of  $7,159.00,  represented 
by  trading  profits  of  $3,050  and  $2,109,  plus  $2,000  deposited  on  Jan- 
uary 29,  1951.  On  March  9,  1951,  he  closed  his  account  and,  on  that 
date,  Daniel  F.  Rice  &  Company  issued  its  check  to  William  P. 
McCarthy  for  $7,159  (Exhibit  120).  The  check  was  cashed  at  the 
Lincoln  National  Bank,  Chicago,  on  March  19,  1951. 

On  March  19,  1951,  an  account  was  opened  with  Daniel  F.  Rice  & 
Company  in  the  name  of  Julia  Connolly,  which  is  the  maiden  name  of 
Mrs.  William  P.  McCarthy.  The  account  was  opened  with  a  cash 
deposit  of  $7,000,  being  a  portion  of  the  proceeds  of  the  $7,159  check 
issued  by  Daniel  F.  Rice  &  Company  to  William  P.  McCarthy  on 


31 

March  9,  1951.  Operations  in  the  name  of  Julia  Connolly  in  1951  re- 
sulted in  a  profit  of  $3,300  and  in  1952  to  September  4,  1952,  in  a  loss 
of  $2,912.09  (Exhibit  121),  or  a  net  prolit  to  September  4,  1952,  of 
$387.91.  On  March  7,  1952,  a  check  was  issued  to  Julia  Connolly  by 
'  Daniel  F.  Rice  &  Company  in  the  amount  of  $1,200.  As  of  September 
22,  1952,  there  was  a  credit  balance  of  $6,187.91  in  the  account  and 
there  were  no  open  trades  at  the  time  (Exhibit  122).  The  $6,187.91  is 
represented  by  the  following : 

Profit  1948-1949— William  McCarthy $3,  050.  00 

Prolit  1951— William  McCarthy 2, 109.  00 

Profit  1951-1952— Julia  Connolly 387.  91 

5,  546.  91 

Cash  deposited  Jan.  29,  1951 $2,  000 

Less  cash  withdrawn  March  7,  1952 1,  200 

800 
Cash  withdrawn  March  9, 1951  (net) 159 

641.00 


6, 187.  91 

The  profits  totalling  $5,546.91,  plus  net  cash  deposits  of  $641.00  are 
still  carried  in  the  account  of  Julia  Connolly  by  Daniel  F.  Rice  & 
Company.  When  interviewed  on  June  19,  1952,  William  McCarthy 
stated  that  the  account  was  opened  in  the  name  of  Julia  Connolly 
with  the  idea  of  concealing  the  account  in  the  event  of  an  investiga- 
tion of  Senator  McCarthy's  alfairs. 

The  overall  trading  picture  for  both  accounts  shows  that  during 
the  period  of  trading  operations,  September  23,  1948,  to  September  4, 
1952,  a  total  of  905,000  bushels  of  commodities  were  traded  in  for  a 
net  profit  of  $5,546.91.  Of  the  total  bushels  traded,  215,000  bushels 
represented  short  trades  resulting  in  a  net  profit  of  $3,668.00,  and 
690,000  bushels  represented  long  trades  resulting  in  a  net  profit  of 
$1,878.91.  Commodities  traded  in  were  rye,  corn,  wheat,  barley,  and 
beans. 

To  be  noted  are  the  short  operations.  Short  selling  involves  much 
greater  risk  than  long,  and  short  sales  of  commodities  is  a  most  dan- 
gerous form  of  speculation,  in  general  indulged  in  only  by  the  most 
astute  and  experienced  operators.  Tlie  first  two  operations  in  the 
William  P.  McCarthy  account  involved  a  short  sale  of  10,000  bushels 
of  July  wheat  on  September  23,  1948,  and  5,000  bushels  of  December 
beans  on  the  same  day.  Apparently,  he  liad  no  previous  experience  in 
either  security  speculation  or  conunodity  speculation  and  questions 
arise  as  to  who  or  what  influenced  these  trading  operations. 

William  McCarthy  formerly  resided  in  Milwaukee  and  on  January 
25,  1939,  opened  a  savings  account  with  the  First  Wisconsin  National 
Bank  of  ^Iihvaukee  (Exhibit  123).  The  only  substantial  deposit  in 
the  account  was  one  of  $3,000  made  December  10.  1010,  the  source  of 
which  is  not  known.  The  account  had  a  balance  of  $2,734.12  on  March 
12, 1942.  when  it  was  closed  and  a  joint  account  was  opened  in  the  same 
amount  with  AVilliam  P.  ]\IcCarthv  and  Julia  MrCni-tliv  (Exhibit 
124).  This  account  had  a  balance  of  $3,124.72  on  June  24,  1948,  at 
which  time  it  was  closed  and  a  Casliier's  Clieck  for  that  amount  was 
issued  to  William  P.  McCarthy  (Exhibit  125). 


32 

Julia  Connolly  opened  a  savings  account  with  the  First  National 
Bank  of  Chicago  prior  to  1941,  and  on  September  11,  1942,  it  was 
made  a  joint  account  with  William  P.  McCarthy  (Exhibit  126). 
On  July  3, 1948,  the  check  for  $3,124.Y2  issued  by  the  First  Wisconsin 
National  Bank  was  deposited  in  the  First  National  Bank  of  Chicago. 

According  to  the  Wisconsin  State  Income  Tax  Returns,  Senator 
McCarthy  paid  William  P.  McCarthy  interest  of  $2,258.00  in  1949 
(Exhibit  127).  No  portion  of  this  was  deposited  by  William  P. 
McCarthy  in  the  savings  account  with  the  First  National  Bank  of 
Chicago  and  it  was  not  reported  as  1949  income  by  William  P. 
McCarthy,  althoujrh  he  did  report  this  as  1950  income.  None  of  the 
$2,025  paid  to  William  P.  McCarthy  in  1950  by  Senator  McCarthy  is 
shown  by  the  Senator  as  interest  expense  in  his  1950  State  Income  Tax 
Returns.  There  is  no  indication  that  William  P.  McCarthy  has  ever 
had  the  financial  capacity  to  loan  anyone  an  amount  that  would  earn 
interest  of  $2,258  in  one  year,  or  even  that  much  interest  in  several 
years. 

An  attempt  was  made  to  interview  William  P.  McCarthy  at  his 
home  on  November  17, 1952,  for  the  purpose  of  obtaining  an  explana- 
tion of  his  unusual  transactions,  but  he  declined  to  be  interviewed. 
Senator  McCarthy  has  been  invited  to  appear  before  the  Subcommittee 
to  explain  his  financial  transactions,  but  has  repeatedly  declined  to 
do  so. 

In  view  of  the  above  facts  the  following  questions  remain  unan- 
swered. 

Was  the  $10,000  deposited  by  William  P.  McCarthy  with  Daniel  F. 
Rice  &  Company  on  August  27,  1948,  received  directly  or  indirectly 
from  Senator  McCarthy?  If  the  $10,000  or  any  portion  of  it  was 
advanced  by  Ray  Kiermas,  why  was  the  eventual  return  of  this 
amount  paid  to  the  Appleton  State  Bank  for  the  benefit  of  Senator 
McCarthy? 

Why  did  Senator  McCarthy  advance  money  to  William  P.  McCarthy 
to  speculate  in  the  commodity  market  at  a  time  when  he  was  heavily 
indebted  to  the  Appleton  State  Bank  and  the  Bank  was  constantly 
calling  on  him  for  a  reduction  in  the  loan  or  an  increase  in  the 
collateral? 

Did  Senator  McCarthy  speculate  in  the  commodity  market  in  the 
name  of  his  brother,  William  P.  McCarthy,  or  was  the  account  with 
Daniel  F.  Rice  &  Co.  a  partnership  account? 

Were  the  payments  totalling  $2,025.00  by  Senator  McCarthy  to 
William  P.  McCarthy  in  1950  made  for  the  purpose  of  bolstering 
the  Daniel  F.  Rice  &  Company  account,  and,  if  so,  why  were  they 
not  paid  directly  to  the  broker  ? 

On  what  balance  was  the  $2,258.00  interest  reported  by  Senator 
McCarthy  as  being  paid  to  William  P.  McCarthy  in  1949  and  for 
how  long  a  period  did  the  payment  cover?  How  was  the  payment 
made — ^by  currency  or  check,  etc.  ? 

The  Appleton  State  Bank  transactions 

On  February  13,  1945,  the  Appleton  State  Bank,  Appleton,  Wis- 
consin, loaned  Senator  McCarthy  $1,800  which  was  used  to  open  a 
checking  account  with  that  bank.  In  July,  1945,  the  bank  loaned 
Senator  McCarthy  $73,000  (Exhibit  91)  which  was  used  by  the 
Appleton  State  Bank  to  purchase,  through  its  omnibus  trading  ac- 


33 

count  with  "Wayne  Hummer  &  Company,  1.000  shares  of  Allegheny 
Corporation  Preferred  Stock  and  $81,000  Central  of  Georgia  Rail- 
way Company  5%  ISeries  C  Bonds  due  April  1,  1959.  These  securi- 
ties were  used  to  collateralize  the  loan.  Additional  Central  of  Georgia 
Railway  5%  1959  bonds  purchased  through  his  Wayne  Hummer  & 
Company  trading  account  were  pledged  by  Senator  McCarthy  to  the 
bank.  Senator  McCarthy  also  received  $15,960.98  from  Wayne 
Hummer  &  Company  on  July  11,  1945,  which  was  used  to  purchase 
$69,000  Central  of  Georgia  Railway  Company  5%  Series  C  bonds 
due  April  1,  1959,  as  additional  collateral  against  his  Appleton  State 
Bank  indebtedness  of  $75,000.  This  $15,960.98  included  approxi- 
mately $11,000  transferred  from  Senator  McCarthy's  account  with 
Dean  Witter  &  Company  plus  realized  profits  of  $3,700  in  his  Wayne 
Hummer  trading  account.  The  account  with  the  Dean  Witter  Com- 
pany showed  a  total  realized  profit  of  $172.78. 

Up  to  and  including  December  21,  1945,  Senator  McCarthy's  in- 
debtedness to  the  Appleton  State  Bank  had  been  reduced  to  $20,- 
364.64,  largely  from  the  proceeds  of  the  sale  of  collateral,  but  includ- 
ing $9,959.23  from  an  undetermined  source.  On  that  date.  Senator 
McCarthy  received  a  loan  of  $149,170.06  from  the  Appleton  State 
Bank.  These  funds  were  used  to  purchase,  through  the  omnibus  ac- 
count of  the  bank  with  Wayne  Hummer  &  Company,  5,000  shares  of 
Chicago,  ^lilwaukee,  St.  Paul  and  Pacific  Railroad  Company  common 
stock,  which  stock  was  pledged  against  the  indebtedness  (Exhibit  92). 
This  loan  increased  Senator  McCarthy's  indebtedness  to  $169,540.70, 
which  was  $69,540.70  in  excess  of  the  bank's  statutory  loan  limitation. 
The  appearance  of  compliance  with  statutory  requirements  was  created 
by  transferring,  on  December  26,  1945,  $09,540  to  a  loan  ledger  sheet 
in  the  name  of  H.  F,  McCarthy,  a  brother  of  Joseph  R.  McCarthy. 
Securities  to  collateralize  the  transferred  balance  of  $69,540  (2,650 
shares  of  Chicago,  Milwaukee,  St.  Paul  &  Pacific  Railroad  Company 
common  stock)  owned  by  Senator  McCarthy  were  transferred  (Ex- 
hibit 93.  In  April  and  May,  1946,  proceeds  from  the  sale  of  2,400 
shares  of  this  stock  sold  tlirough  the  omnibus  account  of  the  Appleton 
State  Bank,  plus  $5,562.54  from  an  undetermined  source,  liquidated 
this  fictitious  H.  F.  McCarthy  loan. 

As  of  early  in  1940,  the  total  indebtedness  of  Senator  McCarthy  to 
the  bank,  including  the  H.  F.  McCarthy  portion,  aggregated  $170,- 
029.03.  During  1946,  funds  totalling  $116,173.69  were  applied  against 
the  loan  reducing  it  to  $53,855.34.  Of  this  reduction,  a  total  of 
$73,127.96  reprepcnted  principally  proceeds  from  the  sale  of  collateral ; 
$28,401.06  whicli  could  not  be  traced  to  any  known  bank  or  brokerage 
account,  including  reductions  of  $16,675.65  in  July  and  August,  1946; 
and  $14,044.06  representing  funds  loaned  Senator  McCarthy  through 
friends  of  tbe  president  of  the  bank.  Subsequently,  in  January  of 
1948.  an  additional  loan  of  $20,000  was  made  to  Senator  McCarthy 
and  up  to  and  including  August  1,  1951,  Senator  McCarthy's  indebt- 
edness to  the  A})pleton  State  Bank  was  reduced  by  $28,855.34  (net), 
representing  principally  proceeds  from  the  sale  of  stock,  thus  re- 
ducing the  balance  of  the  loan  account  to  $45,000.  This  August  1, 
1951,  balance  of  i^45,00O  was  liquidated  on  September  14,  1951,  by  the 
sale  of  collateral. 

The  overall  picture  of  Senator  McCarthy's  loan  at  the  Appleton 
State  Bank  (Exhibits  91  and  91A)  shows  he  was  loaned  a  total  of 


34 

approximate!}'  $248,000  diirin<i:  the  period  February  13,  1945,  to  Sep- 
tember 14,  1951.  Exclusive  of  the  $20,000,  the  major  part  of  this 
$248,000,  a  sum  aggregating  $226,000,  was  loaned  in  1945.  The  largest 
outstanding  balance  at  any  time  was  $170,000.  The  borrowed  funds 
were  used  for  speculation  in  securities  and  the  collateral,  for  the 
greater  jiart,  consisted  of  securities  purchased  with  the  borrowed 
funds.    The  loans  were  liquidated  as  follows : 

Proceeds  of  collateral  sold  and  income  from  dividends $190, 116.  96 

Funds  from  Timothy  McCarthy 2,000.00 

Funds  from  F.  J.  Sensenbrenner 14,  644.  66 

Untraced   funds 39,900.  89 

Checks  from  Senator  McCarthy 1,  242.  43 

$247,  904.  94 

Untraced  funds  totalling  $39,900.89  could  not  be  traced  to  proceeds 
of  securities  sold,  dividends,  or  bank  accounts  of  Senator  McCarthy. 
Of  this  untraced  total,  $28,401.06  was  credited  to  Senator  McCarthy's 
indebtedness  in  1946,  a  year  during  which  his  security  speculations 
resulted  in  a  net  realized  loss  of  in  excess  of  $10,000,  and  a  year  in  which 
he  won  the  Republican  nomination  for  United  States  Senator.  This 
$39,900  included  round  amount  credits  of  $5,000,  $9,000,  $1,000,  $2,500, 
$1,500,  and  $3,500. 

With  further  reference  to  the  loan  of  $20,000  by  the  Appleton  State 
Bank  to  Senator  McCarthy  early  in  January  1948,  it  should  be  noted 
that  the  loan  was  made  against  a  $20,000  note  of  Senator  McCarthy 
endorsed  by  Russell  M.  Arundel,  a  Washington  representative  of  the 
Pepsi-Cola  Corporation. 

In  the  latter  part  of  1947,  Matt  Schuh,  the  President  of  the  Apple- 
ton  State  Bank  and  apparently  a  close  friend  of  Senator  McCarthy, 
prodded  by  his  Board  of  Directors  and  probably  by  the  State  Banking 
Department,  urged  upon  Senator  McCarthy  the  immediate  necessity 
of  reducing  his  indebtedness  to  the  bank  by  $15,000  or  $20,000.  After 
several  communications  back  and  forth  between  Mr.  Schuh  and  Sen- 
ator McCarthy,  the  bank  loaned  the  Senator  $20,000  on  January  3, 1948. 
The  borrowed  funds  were  used  to  purchase  600  shares  of  Chicago, 
Milwaukee,  St.  Paul  &  Pacific  Railroad  preferred  stock.  This  in- 
crease in  an  already  hazardous  loan  was  directly  contrary  to  the  ex- 
pressed wishes  of  the  Board  of  Directors  of  the  bank  (Exhibit  94), 
whose  position  was  probably  influenced  by  Examiners  of  the  State 
Banking  Department  and  possibly  the  FDIC.  This  $20,000  loan  was 
reduced  to  $6,553.04  by  the  sale  of  collateral  stock  for  $12,446.96  and 
the  application  on  January  3,  1949,  of  $1,000  of  a  $1,500  Seaboard 
Airlines  Railroad  common  stock  dividend.  On  January  5,  1949,  the 
balance  of  $6,553.04  was  charged  off  upon  instructions  of  the  State 
Banking  Department  (Exhibit  95).  During  1949,  Senator  McCarthy 
paid  a  total  of  $1,242.43  against  this  charged  off  balance  and  on  No- 
vember 27, 1950,  the  then  balance  of  $5,310.61  was  recharged  to  Senator 
McCarthy's  loan  account.  At  no  time  was  any  attempt  made  to  collect 
on  this  note  from  the  endorser,  Russell  M.  Arundel.  The  Arundel 
situation  is  commented  upon  more  fully  elsewhere  in  this  report. 

Of  particular  interest  indicating  further  the  lengths  to  which  Mr. 
Schuh,  President  of  the  Appleton  State  Bank,  went  in  respect  to 
Senator  McCarthy's  loan,  is  an  arrangement  made  in  April  1947, 
regarding  interest  payments  on  Senator  McCarthy's  note.    This  op- 


35 

eration,  elsewhere  referred  to  in  this  report,  permitted  Senator  Mc- 
Carthy to  pay  tlie  interest  due  in  casli,  but  to  have  the  cash  applied 
to  the  loan  principal  and  set  up  interest  notes  in  the  amount  of  the 
interest  paid. 

As  of  early  November  1948,  the  indebtedness  of  Senator  McCarthy 
to  the  Appleton  State  Bank  was  $72,000.  He  had  sustained  net  real- 
ized loss  in  the  stock  market  of  $28,000  in  1947  and  $^35,000  in  1948. 
As  of  November  22,  23,  24,  25,  and  26,  1948,  his  checkin<^  account  at 
the  Riggs  National  Bank,  Washington,  D.  C,  was  overdrawn.  The 
Appleton  State  Bank  was  demanding  that  he  do  something  about  the 
Arundel  note  and  suggested  that  they  use  the  $10,000  savings  account 
of  Ray  Kiermas,  an  employee  in  Senator  McCarthy's  office,  to  reduce 
the  overdue  $20,000  Arundel  note  (Exhibit  9G).  This  savings  account 
of  Ray  Kiermas  was  at  this  time  standby  collateral  for  Senator 
McCarthy's  loan.  This  figure  of  $10,000  is  to  be  noted  as  on  Novem- 
ber 12, 1948,  Senator  McCarthy  received  the  $10,000  fee  from  Lustron 
Corporation  which  was  used,  not  to  reduce  his  Appleton  State  Bank 
indebtedness,  but  to  purchase  450  shares  of  Seaboard  Airlines  Railroad 
common  stock,  which  was  delivered  to  the  Appleton  State  Bank  as 
much  needed  collateral  for  the  loan. 

That  this  $10,000  Lustron  fee  was  a  very  limited,  temporary  solu- 
tion of  the  loan  collateral  situation  is  indicated  by  early  1949  letters 
between  the  Appleton  State  Bank  and  Senator  McCarthy  (Exhibit 
97).  In  response  to  urgent  requests  for  more  collateral  $10,000  was 
transferred  from  a  commodity  tradinjr  account  at  Daniel  F.  Rice  & 
Company,  Chicago,  111.,  in  the  name  of  William  P.  McCarthy,  a  brother 
of  Senator  McCarthy,  through  the  Continental  Illinois  National  Bank 
of  Chicago,  on  February  10,  1949,  to  the  Appleton  State  Bank  and 
was  used  to  acquire  additional  collateral.  This  transaction  is  set  forth 
in  greater  detail  elsewhere  in  this  report.  In  late  December  1950, 
4831/2  shares  of  Dana  Corporation  stock  were  sold  and  the  proceeds 
amounting  to  $6,905.19  were  applied  against  the  loan.  On  January 
25,  1950,  an  additional  350  shares  were  sold  and  the  proceeds,  amount- 
ing to  $4,796.32  were  conveyed  to  the  Appleton  State  Bank  by  AVayne 
Hummer  &  Company  as  part  of  their  check  No.  13,561-B,  dated  Jan- 
uary 25,  1950,  to  the  order  of  Appleton  State  Bank,  in  the  amount  of 
$5,889.79.  On  January  26,  1950,  the  Appleton  State  Bank  delivered 
their  Demand  Certificate  of  Deposit  No.  100,611  to  Ray  Kiermas  in 
the  amount  of  $5,889.79,  representing  the  proceeds  of  the  sale  of  the 
Dana  Company  stock  amounting  to  $4,796.32  and  the  proceeds  of  the 
sale  of  50  shares  of  Senator  McCarthy's  holdings  of  Seaboard  Air- 
lines Railroad  common  stock  amounting  to  $1,093.47.  This  Certificate 
of  Deposit  was  deposited  by  Kiermas  in  his  Appleton  State  Bank  sav- 
ings account  on  September  7,  1950,  seven  months  later. 

This  $10,000  from  Daniel  F.  Rice  &  Company  provided  no  solution 
to  the  margin  situation  as  evidenced  by  letters  between  the  Appleton 
State  Bank  and  Senator  McCarthy  from  June  2,  1949,  to  May  2,  1950 
(Exhibit  98).  After  May,  1950,  the  pressure  in  respect  to  sufficient 
collateral  for  the  loan  appears  to  have  lessened  due  to  appreciation  in 
pledged  Seaboard  Airlines  Railroad  stock  and  substantial  coUaterali- 
zation  of  the  loan  by  assets  of  Rav  Kiermas.  As  of  September  14, 
1951,  the  indebtedness  of  Senator  "McCarthy  to  the  Appleton  State 
Bank  aggregated  $45,000,  and  was  liquidated  on  that  date  by  a  por- 


36 

tion  of  the  proceeds  of  the  sale  of  1,000  shares  of  Seaboard  Airlines 
Railroad  Company  stock  (Exhibit  99). 

On  January  28,  1952,  the  Appleton  State  Bank  loaned  Senator  Mc- 
Carthy $12,000  which  sum  was  in  turn  given  to  H.  F.  McCarthy  in 
the  form  of  an  Appleton  State  Bank  Demand  Certificate  of  Deposit 
issued  to  him  in  the  amount  of  $12,000  on  January  28, 1952. 

Exhibit  100  sets  forth  particulars  of  assets  of  Ray  Kiermas  used 
to  collateralize  the  Appleton  State  Bank  loan  of  Senator  McCarthy. 
Comments  regardinor  the  Kiermas  situation,  particularly  the  accept- 
ance of  the  pledge  of  Ray  Kiermas'  savings  account  by  his  employer 
in  1947  and  the  pledge  of  the  $5,000  mortgage  about  the  time  of  the 
1946  election  are  made  elsewhere  in  this  report. 

Appleton  State  Bank  interest  manipulation 

Under  date  of  April  15,  1947  (Exhibit  105),  Senator  McCarthy  first 
broached  the  plan  to  pay  the  interest  due  on  his  notes  but  apply  the 
payments  to  the  principal  and  set  up  interest  notes  for  the  interest 
paid.  Subsequently,  when  most  advantageous  to  Senator  McCarthy, 
and  at  his  discretion,  the  interest  note  was  to  be  paid  and  the  payment 
taken  as  a  tax  deduction  against  income.  Senator  McCarthy's  letter 
dated  July  12,  1947,  to  Matt  Schuh,  President  of  the  Appleton  State 
Bank  (Exhibit  106),  again  stresses  the  income  tax  feature.  Under 
date  of  September  2, 1947,  (Exhibit  107)  Mr.  Schuh  specifically  asked 
for  a  check  for  $477.00  interest  and,  in  compliance  with  a  subsequent 
telephone  conversation  on  September  9, 1947,  Ray  Kiermas  forwarded 
Senator  McCarthy's  check  for  $500  to  the  bank  (Exhibit  108). 
Letters  dated  October  16,  1947,  April  5,  1948,  and  April  16,  1948, 
further  explain  the  operation.  In  1949,  Senator  McCarthy  elected 
to  use  interest  paid  in  this  manner  totalling  $6,810.28  as  a  deduction 
against  income  on  his  state  and  federal  income  tax  returns.  In  1946, 
1947,  and  1948,  deductions  of  this  $6,810.28  were  not  needed  to  establish 
a  loss  in  respect  to  his  Wisconsin  income  tax  returns,  as  filed,  because 
losses  on  security  transactions  operated  to  eliminate  taxable  income. 
In  connection  with  Senator  McCarthy's  1949  Wisconsin  state  income 
tax  return,  as  filed,  he  listed  loss  on  security  transactions  of  only  $2,290 
against  gross  income  of  $17,120.  An  interest  deduction  of  $15,172.54, 
of  which  this  $6,810.28  was  a  material  part,  operated  to  eliminate  tax- 
able income  for  that  year. 

On  Senator  McCarthy's  1949  Federal  Income  Tax  Return,  this 
$6,810.28  deduction  furnished  a  substantial  offset  to  the  $10,000  Lustron 
fee,  which  was  received  in  1948  but  reported  as  income  on  his  1949 
Federal  return.  It  might  be  observed  that  Senator  McCarthy  re- 
ported this  $10,000  as  1948  income  on  his  Wisconsin  tax  return  for  that 
year  upon  instructions  from  J.  L.  Tibbetts,  Assessor  of  Incomes,  in 
answer  to  an  inquiry  from  Senator  McCarthy. 

The  Wisconsin  Department  of  Taxation,  after  investigation,  dis- 
allowed this  1949  deduction  of  $6,810.28  on  the  basis  that  "this  interest 
was  actually  paid  in  cash  in  the  years  1946  and  1947"  (Exhibit  110). 

The  Bureau  of  Internal  Revenue,  after  investigation,  also  dis- 
allowed this  1949  interest  deduction  of  $6,810.28  as  per  their  audit 
report  dated  June  11,  1951,  on  the  basis  of  a  "schedule  supplied 
them  over  the  signature  of  the  President  of  the  bank,  M.  A.  Schuh, 
which  schedule  reflects  individual  items  of  interest  as  actually  re- 
ceived by  the  bank."     The  transfer  of  the  $10,000  Lustron  fee  from 


1949  income,  as  reported  by  Senator  ^IcCarthy,  to  1948  income  and  the 
disallowance  of  the  $0,810.28  interest  deducted  in  1949  were  the  major 
items  upon 'which  an  additional  tax  of  $^3,975. 15  was  levied  by  the 
Bureau  of  Internal  Revenue  in  respect  to  1948  and  1949  income. 

Senator  McCarthy's  and  Ray  Kiermas^  hank  accounts 

From  January  1,  1948,  to  November  12,  1952,  Senator  McCarthy 
deposited  a  total  of  $172,023.18  in  his  account  at  the  Riggs  National 
Bank,  "Washington,  D.  C,  and  durinnj  the  same  period,  Ray  Kiermas 
deposited  a  total  of  $90,921.20  (Exhibit  102) .  The  figure,  in  respect  to 
Senator  McCarthy's  deposits,  does  not  include  $10,000  received  from 
Lustron  Corporation  in  1948,  nor  the  $10,000  withdrawn  from  the  ac- 
count at  Daniel  F.  Rice  &  Company,  Chicago,  in  the  name  of  William 
P.  McCarthy  in  1949,  which  transaction  is  set  forth  in  detail  elsewhere 
in  this  report.  Tliese  two  amounts  went  to  "Wayne  Ilunmier  &  Com- 
pany, Chicago,  and  M-ere  used  to  purchase  securities  which  were 
pledged  as  collateral  for  the  Appleton  State  Bank  loan  to  Senator 
McCarthy.  Also,  it  does  not  include  approximately  $15,000  in  divi- 
dends received  on  securities  owned  by  Senator  McCarthy,  which  divi- 
dends were  applied  to  reduce  his  indebtedness  to  the  Appleton  State 
Bank. 

Investigation  revealed  only  two  checks  from  brokerage  houses 
($5,449.55)  included  in  the  above  $172,023.18  deposit  figure.  It  does, 
however,  include  approximately  $8,000  representing  loans  from  banks 
and  loan  companies.  There  were  no  transfers  of  appreciable  amounts 
from  other  bank  accounts  in  the  name  of  Senator  McCarthy. 

The  total  deposit  figure  of  $90,921.20  in  respect  to  Ray  Kiermas  in- 
cludes approximately  $13,000  representing  checks  from  brokerage 
accounts  and  transfers  from  his  other  accounts  deposited  in  1951,  and 
a  check  from  a  broker  and  a  transfer  of  funds  totalling  $2,934.55 
deposited  in  1952. 

It  is  to  be  noted  that  of  the  $172,023.18  deposited  by  Senator  Mc- 
Carthy a  total  of  $59,592.52  has  not  been  identified  as  to  source,  includ- 
ing approximately  $19,000  in  currency  deposited.  In  respect  to  the 
$90,921.20  deposited  by  Ray  Kiermas,  a  total  of  $44,908.43  has  not  been 
traced  to  its  source,  including  $29,230  deposited  in  currency  (Exhibit 
103). 

Comparison  of  the  total  funds  deposited  by  Ray  Kiermas  in  1950, 
1951,  and  1952,  as  against  funds  deposited  by  him  in  1948  and  1949, 
disclosed  a  substantial  increase  in  respect  to  the  three  last  years.  This 
increase  is  appreciable,  particularly  as  regard  1950  and  1952,  even 
after  deducting  the  funds  representing  brokers'  checks  and  transfers 
mentioned  above.  To  be  noted  is,  that  of  the  $90,921.20  deposited  by 
Ray  Kiermas  from  1948  through  1952,  a  total  of  $29,230  (30%  of  the 
total  deposited)  represented  currency  deposits,  and  of  this  $29,230, 
approximately  $21,000  represented  individual  deposits  in  excess  of 
$300  each,  and  12  individual  deposits  ranging  in  amounts  from  $700 
to  $2,405  accounted  for  $14,000  of  this  $21,000. 

Substantial  funds  were  passed  to  and  from  Senator  McCarthy  and 
Ray  Kiermas.  From  March,  1947  to  May,  1952,  $10,380.22  passed  from 
Ray  Kiermas  to  Senator  McCarthy,  including  $1,400  identified  on  the 
deposit  slip  as  "Art  Kiermas",  and  $13,047.92  from  Senator  McCarthy 
to  Ray  Kiermas  (Exhibit  104). 


38 

Illustrative  of  tlieir  circuitous  financial  transactions  is  a  December, 
1951,  transaction.  On  December  5,  1951.  Senator  McCarthy  received 
a  loan  from  the  Riggs  National  Bank,  Washington,  D.  C,  of  $G,000 
against  his  demand  note  secured  by  200  shares  of  Seaboard  Air  Line 
Railroad  Company  common  stock.  With  this  $6,000  he  purchased  two 
Cashier's  Checks,  one  in  the  amount  of  $4,500  and  one  for  $1,500.  The 
$4,500  check  he  deposited  in  his  regular  checking  account  at  the  Riggs 
National  Bank  on  December  21,  1951,  together  with  a  $2,000  check  of 
Ray  Kiermas  for  a  total  deposit  of  $6,500.  The  Cashier's  Check  in 
the  amount  of  $1,500  was  deposited  in  the  Riggs  National  Bank  ac- 
count of  Ray  Kiermas  on  December  10,  1951.  There  may  be  a 
reasonable  explanation  for  these  transactions,  but  in  the  absence  of 
such  explanation,  obvious  questions  arise. 

Why  the  use  of  Cashier's  Checks?  Why  was  not  the  $6,000  loan 
credited  directly  to  Senator  McCarthy's  account?  Why  the  exchange 
of  checks  between  Senator  McCarthy  and  Ray  Kiermas? 

Whether  Senator  McCarthy's  Activities  on  Behalf  of  Certain 
Special  Interest  Groups,  Such  as  Housing,  Sugar  and  China, 
Were  Motivated  by  Self-Interest 

From  time  to  time,  articles  have  appeared  in  the  press  and  reports 
have  been  received  by  the  Subcommittee  indicating  the  possibility  that 
Senator  McCarthy  may  have  championed  the  cause  of  certain  special 
interest  groups  including  those  relating  to  certain  phases  of  housing, 
sugar  and  Nationalist  China.  There  were  also  charges  that  he  may 
have  done  this  in  self-interest. 

Housing 

In  this  connection  the  Subcommittee  has  little  to  add  to  what  has 
already  been  stated  previously  under  the  heading  of  the  Lustron  fee 
payment  wherein  the  receipt  of  money  from  the  Robert  Byers  firm 
and  other  matters  were  also  discussed.  Other  questions  which  natu- 
rally come  to  mind  from  these  facts  as  previously  set  forth  are : 

Was  Senator  McCarthy's  appearance  at  Columbus,  Ohio  in 
connection  with  the  promotion  of  Byers'  homes  related  to  his 
position  as  Vice-Chairman  of  the  Joint  Housing  Committee  and 
membership  on  the  Senate  Banking  and  Currency  Committee  ? 

Did  Senator  McCarthy  receive  any  fees,  loans,  or  contributions 
from  any  other  housing  manufacturers,  similar  to  that  received 
from  Byers  and  Lustron  ? 

Sugar 

In  that  the  press  from  time  to  time  characterized  Senator  McCarthy 
as  the  champion  of  certain  sugar  interests  and  as  the  Senator  obtained 
the  endorsement  of  a  $20,000  Appleton  State  Bank  note  from  Russell 
M.  Arundel,  a  Washington  representative  of  Pepsi-Cola,  at  a  time 
when  Pepsi-Cola  was  interested  in  certain  legislation,  etc.,  the  Sub- 
committee believed  that  the  propriety  of  said  conduct  was  a  subject 
for  further  inquiry. 

Senator  McCarthy  was  a  member  of  the  Senate  Banking  and  Cur- 
rency Committee,  and  its  Subcommittee  on  Sugar,  since  January  6, 
1947.  As  sugar  rationing  and  price  controls  were  still  in  existence 
during  1947,  the  determination  as  to  wliether  said  controls  were  to  be 


39 

continued  in  any  form,  or  terminated,  was  the  responsibility  of  tlie 
Congress,  and  particularly  the  Bankiniz;  and  Currency  Committees. 
The  Department  of  Ao;ricuUure  advocated  the  continuation  of  sugar 
controls,  whereas  (he  Pepsi-Cola  Comjiany  and  its  hundreds  of  bottlers 
tliroughout  the  country,  among  others,  urged  decontrol. 

As  related  in  greater  detail  in  another  portion  of  this  report.  Senator 
McCarthy  was  greatly  over-extended  in  his  loan  position  at  the 
Appleton  State  Bank  from  the  time  of  his  election  to  the  Senate  in 
November  of  194G  and  throughout  1947,  and  the  Bank  was  constantly 
requiring  additional  collateral,  liquidation  of  pledged  collateral 
and/or  reduction  of  his  loans.  On  or  about  December  .5  or  G,  1947, 
Senator  McCarthy  hurriedly  conferred  with  Russell  M.  Arundel  (ac- 
cording to  Arundel's  testimony  on  June  12,  1952,  before  this  Sub- 
committee) to  apprise  him  of  his  financial  predicament  and  the 
pressing  notes  held  by  the  Appleton  State  Bank,  and  Arundel  en- 
dorsed a  $20,000  six-months  note  for  Senator  McCarthy,  on  or  about 
December  8, 1947,  which  was  used  as  collateral  for  Senator  McCarthy's 
Appleton  Bank  loans. 

His  acceptance  of  a  $20,000  favor  from  the  Washington  representa- 
tive of  the  Pepsi-Cola  Company  at  the  very  time  he  was  attacking  the 
Government  for  its  manner  of  handling  sugar  control  makes  it  dif- 
ficult to  determine  whether  Senator  McCarthy  was  working  for  the 
best  interests  of  the  Govermnent.  as  he  saw  it,  or  for  Pepsi-Cola. 

In  view  of  the  fact  that  Senator  McCarthy  has  failed  to  appear 
before  this  Subcommittee  to  offer  his  explanation  of  the  aforemen- 
tioned transactions  the  following  questions  remain  unanswered: 

"Was  it  proper  for  Senator  McCarthy,  while  serving  on  the 
Banking  and  Currency  Committee  and  its  Subcommittee  on  Sugar, 
to  seek  and  accept  the  endorsement  on  his  Bank  Note  for  $20,000 
by  a  person  vitally  interested  in  sugar  legislation? 

Was  there  any  relationship  between  Arundel's  endorsement  of 
Senator  McCarthy's  $20,000  note  on  or  about  December  8,  1947, 
and  Senator  McCarthy's  special  appearance  to  interrogate  the 
Army  Secretary  on  December  9,  1947,  before  the  Committee  on 
Appropriations  regarding  the  Army's  purchase  of  Cuban  sugar, 
which  purchase  had  been  previously  criticized  by  Pepsi-Cola? 
Did  Senator  McCarthy's  over-extended  debt  position  with  the 
Appleton  State  Bank  and  the  Bank's  constant  demand  for  liqui- 
dation of  the  indebtedness  or  an  increase  in  his  collateral,  influence 
Senator  McCarthy's  position  on  the  sugar  decontrol  issue  to  such 
an  extent  that  he  followed  the  "Pepsi-Cola  line"  ? 

China 

Unconfirmed  reports  were  received  by  the  Subcommittee  to  the 
effect  that  when  Senator  McCarthy  began  his  "public  phase"  of  his 
fight  against  communism  early  in  1950, liis  activities  in  this  direction 
were  general  but  that  subsequently  he  began  to  follow  what  was  termed 
the  line  of  the  China  lobby. 

As  an  example  of  this,  it  was  pointed  out  that  General  George  C. 
Marshall  has  been  one  of  the  individuals  attacked  by  the  "China 
Lobby"  and  on  June  14,  1952,  Senator  McCarthy  delivered  a  65,000- 
word  speech  in  the  Senate  attacking  General  Marshall.     (Cong.  Rec. 


40 

p.  6752.)  It  was  also  inferred  that  Senator  McCarthy  may  have 
receiver]  financial  assistance  or  other  considerations  from  members  of 
this  group. 

Tlie  Subcommittee  did  want  to  question  Senator  McCarthy  about 
these  reports  and  charges  as  well  as  other  information  in  its  files  relat- 
ing thereto.  From  an  investigation  standpoint,  the  principle  is  the 
same  whether  Senator  McCarthy  may  have  represented  housing,  sugar, 
or  some  other  special  interest  group,  whether  or  not  related  to  the 
issue  of  communism.  However,  in  the  face  of  the  reasons  which  the 
Senator  has  used  in  refusing  to  cooperate  with  the  Subcommittee, 
namely,  because  S.  Res.  187  was  communist  inspired  and  any  criticism 
or  investigation  of  him  was  an  aid  to  communism — the  Subcommittee 
has  been  reluctant  to  conduct  any  extensive  inquiry  of  this  matter  or 
to  discuss  it  in  this  report. 

In  fairness  to  Senator  McCarthy,  it  should  be  said  that  the  Sub- 
committee has  not  received  any  evidence  to  date  reflecting  that  he 
received  money  from  members  of  the  China  Lobby. 

It  has  been  ascertained  that  Mr.  Alfred  Kohlberg,  a  New  York  City 
importer,  frequently  identified  as  connected  with  the  China  Lobby, 
sent  Senator  McCarthy  a  $500  check  to  assist  him  in  his  fight  against 
communism  and  that  Senator  McCarthy  returned  this  by  letter  of 
April  11,  1950  on  the  grounds  that  "it  might  be  misconstrued  by  left- 
wing  commentators."  There  was,  however,  information  developed 
incident  to  the  Subcommittee  investigation  that  there  was  contact 
between  Senator  McCarthy's  office  in  Washington  and  Alfred  Kohl- 
berg in  New  York  City  on  at  least  nine  separate  occasions  during  the 
period  from  April  to  September  1952  (Exhibit  128). 

Whether  Loan  or  Other  Transactions  Senator  McCarthy  Had 
With  Appleton  State  Bank  or  Others  Involved  Violations  of  the 
Tax  and  Banking  Laws 

Taxes 

The  facts  relating  to  tax  matters  have  been  previously  set  forth  under 
sub-headings,  "William  P.  McCarthy  Transactions,"  "Senator  Mc- 
Carthy's Transactions  with  the  Appleton  State  Bank,"  "Appleton  State 
Bank  Interest  Manipulations." 

In  view  of  this  it  appears  unnecessary  to  repeat  them  at  this  point 
in  the  report. 

BanMng  Laios 

The  facts  and  circumstances  relating  to  Senator  McCarthy's  trans- 
actions with  the  Appleton  State  Bank  have  also  been  set  forth  earlier 
in  this  report,  particularly  under  the  sub-heading,  "Senator  Mc- 
Carthy's Transactions  with  the  Appleton  State  Bank."  However,  the 
laws  relating  to  these  matters  and  a  brief  discussion  of  the  particular 
circumstances  is  set  forth  as  follows : 

The  Wisconson  Statutes  published  in  1939  provide  in  Section  221.29 : 

Limit  of  Loans.  (1)  The  total  liabilities  of  any  person  ...  to  any  bank,  for 
money  l)orrowed  .  .  .  shall  at  no  time  exceed  twenty  per  cent  of  the  amount  of 
capital  stock  and  surplus  of  such  bank  or  fifteen  per  cent  of  the  amount  of  capital 
and  surplus  of  such  bank (Exhibit  129.) 

Amendments  to  this  section  thereafter  did  not  alter  the  foregoing 
limitation. 


41 

The  Wisconsin  Statutes  published  in  10  i9  provide  in  Section  221.29 : 

Limit  of  loans  and  investments.  (1)  (a)  The  total  liabilities  of  any  per- 
son ...  to  any  bank  for  money  borrowed  shall  at  no  time  exceed  20  per  cent 
of  the  capital  stock  and  surplus  or  15  per  cent  of  the  capital  and  surplus  of 
such  bank  .  .  ."  (Exhibit  loU.) 

In  1945  and  1946,  The  Appleton  State  Bank  had  outstanding  cap- 
ital stock  of  $200,000  and  a  surplus  of  $300,000  with  a  loan  limitation 
to  one  pei-son  of  $100,000. 

Section  7  (a)  of  the  Securities  and  Exchange  Act  of  1934  provides: 

For  the  purpose  of  preventing  the  excessive  use  of  credit  for  the  purchase 
or  carrying  of  securities,  the  Board  of  Governors  of  the  Federal  Reserve  System 
shall,  prior  to  the  effective  date  of  this  section  and  from  time  to  time  thereafter, 
prescribe  rules  and  regulations  with  resi)ect  to  the  amount  of  credit  that  may 
be  initially  extended  and  subsequently  maintained  on  any  security  (other  than 
an  exempted  security)  registered  on  a  national  securities  exchange  .  .  . 

Regulation  "U"  issued  by  the  Board 'of  Governors  of  the  Federal 
Reserve  System  pursuant  to  the  provisions  of  Section  7  of  the  Securi- 
ties and  Exchange  Act  of  1934,  as  amended  to  July  20, 1949,  provides 
in  part  as  follows : 

On  and  after  May  1,  1936,  no  bank  shall  make  any  loan  secured  directly  or 
indirectly  by  any  stock  for  the  purpose  of  purchasing  or  carrying  any  stock 
registered  on  a  national  securities  exchange  in  an  amount  exceeding  the  maximum 
loan  value  of  tlie  collateral,  as  prescribed  from  time  to  time  for  stocks  in  the 
supplement  to  this  regulation  and  as  determined  by  the  bank  in  good  faith  for 
any  collateral  other  than  stocks  .  .  . 

The  margin  requirements  in  eflPect  between  February  6,  1945,  and 
July  4, 1945,  was  50%  and  between  July  5, 1945,  and  January  20,  1946, 
it  was  75%.  By  the  terms  of  Regulation  "U",  the  bank  between  Feb- 
ruary 5,  1945,  and  July  5,  1945,  was  unable  to  legally  loan  money  for 
carrying  stock  registered  on  a  national  securities  exchange  in  excess 
of  50%  of  the  value  of  the  stock,  and  between  July  5,  1945,  and  Janu- 
ary 20, 1946,  in  excess  of  25%  of  the  value  of  the  stock. 

Between  December  21,  1945,  and  May  23,  1946,  the  loan  to  Joseph 
R.  McCarthy  was  in  excess  of  $100,000,  the  loan  limitation  of  the 
Appleton  State  Bank,  and  in  violation  of  the  Wisconsin  bank  statutes. 
For  the  purpose,  ostensibly,  of  complying  with  the  law,  the  Bank 
carried  in  a  separate  account  that  portion  of  the  loan  in  excess  of 
$100,000  in  the  name  of  Howard  AlcCarthy,  and  transferred  an 
equitable  amount  of  the  collateral  to  the  Howard  McCarthy  account. 

The  loan  to  Senator  McCarthy  was  constantly  in  excess  of  the 
collateral  requirements  of  the  Bank,  as  evidenced  by  the  numerous 
letters  from  the  Bank  to  Senator  McCarthy.  It  was  under  collateral- 
ized by  the  terms  of  Federal  Reserve  Board  Regulation  "U",  which 
provided  a  margin  requirement  of  50%  or  greater  at  all  times  between 
February  5, 1945  and  the  present  time. 

The  most  flagrant  disregard  for  the  state  banking  laws  and  the 
Federal  Reserve  Board  regulation  was  the  financing  by  the  Appleton 
State  Bank  of  the  acquisition  by  Senator  McCarthy  of  5,000  shares  of 
Chicago,  Milwaukee,  St.  Paul  &  Pacific  Railroad  stock  in  December 
1945.  On  December  21,  1945  the  loan  account  of  Joseph  R.  McCarthy 
was  increased  by  $149,176.00  raising  the  balance  to  $169,540.70,  which 
was  $69,540.70  in  excess  of  the  bank's  legal  loan  limit  (Plxhibit  131). 
The  $149,176.06  represented  a  check  for  that  amount  issued  to  Wayne 
Hummer  &  Company  (Exhibit  132)  which  was  credited  by  Wayne 


42 

Hummer  &  Co.  on  December  26,  1945  to  the  account  with  Appleton 
State  Bank  and  was  used  to  pay  for  5,000  sliares  of  C.  M.  St.  P.  &  P. 
R.  R.  stock  purchased  between  November  28,  1945  and  December  26, 
1915  (Exhibit  133) .  By  the  terms  of  Regulation  "U"  it  would  appear 
that  the  bank  was  precluded  from  loaning  more  than  25%  or  $37,- 
291.01  to  purchase  stock  having  a  market  value  of  $149,176.06.  "Within 
a  few  days  after  increasing  the  loan  to  Senator  McCarthy  to  $169,- 
540.70,  an  amount  in  excess  of  the  loan  limit  or  $69,540.70  was  trans- 
ferred to  an  account  in  the  name  of  Howard  McCarthy. 

On  April  22,  1917  the  Bank  wrote  Senator  McCarthy  advising  him 
of  the  market  value  of  his  collateral  and  reflecting  a  deficiency  of 
$11,200.00  in  the  Bank's  requirement  of  120%  of  the  loan  balance 
(Exhibit  134). 

The  market  value  of  listed  stocks  on  that  date  was $21, 137.  50 

50%  of  market  value  of  listed  stocks 10,  508.  75 

Other  collateral 32,  350. 10 

42,  924.  85 
Amount  of  loan 53,  919.  00 

Undercollateralized  per  Federal  Reserve  Bank  Regulation $10, 994. 15 

On  March  14,  1949  the  Bank  wrote  Senator  McCarthy  informing 
him  that  his  collateral  valued  at  $66,594.66  provided  a  margin  of  only 
11  percent  plus  over  the  loan  balance  as  against  the  Bank's  requirement 
of  20  percent.  This  letter  indicated  that  $22,830.00  of  the  collateral 
held  as  security  for  Senator  McCarthy's  loan  was  owned  by  Ray 
Kiermas,  Senator  McCarthy's  Administrative  Assistant  ( Exhibit  135 ) . 
After  February  5,  1945,  the  Federal  Reserve  Board  regulations  at  all 
times  provided  for  a  margin  of  at  least  50  percent  of  the  market  value 
of  listed  stocks.  On  this  basis  there  appeared  to  be  a  deficiency  in  the 
collateral  of  $15,824.05  computed  as  follows : 

Kiermas  listed  stock : 

100  Seaboard $1,  625.  00 

50  Hecla 537.  50 

100  Burroughs 1,  500.  00 

50  General  Finance 300.  00 

$3,  962.  50 

50  percent  of  market  value  of  listed  stock $1,  981.  25 

Other  Kiermas  collateral : 

7,000  Central  of  Ga.  51/28  of  59 367.  50 

10,000  Central  of  Ga.  5s  of  SCT 500.  00 

300  Gerbers  stock 4,  200.  00 

Mortgage 3,  80O.  00 

Savings  account 10,  000.  00 

McCarthy  listed  stock : 

1,300  Seaboard $21, 125.  00 

450  Seaboard 7,  312.  50 

500  Dana  Corporation 12,  000.  00 

700  Central  of  Ga.  common 2,  800.  00 

$43, 237.  50 
50  percent  of  market  value  of  listed  stock 21,618.  75 


I 


43 

Other  McCarthy  collateral : 

Cash  from  sale  of  Seaboard $484.  73 

Cash 42.43 

Interest  reserve  account 678.  29 

Loan  value  of  collateral  per  Regulation  "U" $43,072.95 

Loan  balance 59,  497.  00 

Deficiency  in  collateral  per  Regulation  "U" $15, 824,  05 

Whether  Senator  McCarthy  Violated  Federal  and  State  Corrupt 
Practice  Acts  in  Connection  With  His  1944-46  Senatorial  Cam- 
paigns or  in  Connection  With  His  Dealings  with  Ray  Kiermas 

The  191^  campaign 

Tire  facts  with  respect  to  the  possibility  that  a  part  or  all  of  the 
$17,600  which  Senator  McCarthy's  relatives  allegedly  contributed  to 
his  1944  Primary  Campaign  for  the  Senate,  was  in  fact  funds  of  Sen- 
ator McCarthy  which  he  had  derived  from  profits  in  stock  market 
speculation,  are  discussed  under  the  title  ''Senator  McCarthy's  1944 
Campaign  for  the  Senate  Primary",  previously  set  forth  in  this  report. 

In  addition  to  the  alleged  contributions  to  "The  Committee  to  Elect 
Joseph  K.  McCarthy  to  the  U.  S.  Senate"  by  the  relatives  of  Senator 
McCarthy,  Joseph  R.  McCarthy  personally  executed  an  affidavit  on 
August  7,  1944,  reporting  expenditures  of  $2,741.33  (Exhibit  136). 
If  the  alleged  contributions  by  his  relatives  totalling  $17,600,  were, 
in  fact,  his  personal  campaign  expenses,  it  would  indicate  a  total  of 
$20,341.33  expended  by  Senator  McCarthy  in  the  1944  unsuccessful 
primary  election.  This,  however,  is  not  consistent  with  the  affidavit 
executed  by  Senator  McCarthy  on  September  20,  1944  (Exhibit  137), 
which  was  filed  with  the  United  States  Senate  which  states : 

An  independent  Campaign  Committee  of  which  James  J.  Colby,  ]10  E.  Wis. 
Ave.  was  Chairman  rec'd  contributions  and  expended  money  in  behalf  of  my 
candidacy  but  I  have  not  information  as  to  their  account. 

If  Senator  McCarthy  actually  expended  $20,341.33  of  his  personal 
funds  on  the  unsuccessful  primary,  it  would  appear  that  this  was  in 
excess  of  the  $5,000  limitation  provided  by  the  laws  of  the  State  of 
Wisconsin. 

The  questions  before  the  Subcommittee  in  this  connection  are: 

What  was  the  source  of  funds  totalling  $17,600  allegedly  con- 
tributed by  Senator  McCarthy's  relatives  to  his  1944  primary 
campaign? 

What  disposition  was  made  by  Senator  McCarthy  of  stock  mar- 
ket profits  in  excess  of  $40,000  realized  in  1943  and  withdrawn 
from  time  to  time  in  1944  ? 

Why  did  Senator  McCarthy,  who  had  $40,000  at  his  disposal  in 
1944  call  upon  his  relatives  for  financial  assistance  in  connection 
with  the  1944  primary  campaign. 

The  191^6  senatorial  campaign 

Section  599  of  Title  18,  U.  S.  C,  provides  that  a  candidate  who 
promises  an  appointment  to  a  public  or  private  position  in  exchange 
for  political  support  shall  be  fined  $1,000  or  imprisoned  for  not  more 


44 

than  one  year,  or  both,  and  if  the  violation  is  wilfull,  shall  be  fined 
$10,000  and  imprisoned  for  not  more  than  two  years,  or  both. 

Ray  Kiermas,  Administrative  Assistant  to  Senator  McCarthy,  is 
reported  as  a  contributor  to  McCarthy's  campaign  and  since  his  em- 
ployment by  Senator  McCarthy  has  had  many  financial  transactions 
with  Senator  McCarthy.  The  "Appleton  McCarthy  for  Senator  Club" 
reported  a  contribution  from  Ray  Kiermas  on  January  25,  1946,  of 
$49.50  (Exhibit  138).  The  "Milwaukee  County  McCarthy  for 
Senator  Club,"  by  its  secretary,  Nathan  W.  Heller,  reported  a  contri- 
bution from  Ray'Kiermas  on  March  28, 1946,  of  $50.00  (Exhibit  139). 
The  "McCarthy  for  Senator  Club,"  by  its  secretary.  Urban  P.  Van 
Susteren,  reported  contributions  from  Ray  Kiermas  on  May  3,  1946, 
of  $50.00,  and  on  November  10,  1946,  of  $468.80.  A  loan  to  this  club 
of  $2,000.00  on  October  18,  1946,  was  reported  as  repaid  to  Kiermas 
on  November  7, 1946  (Exhibit  140) . 

On  August  22,  1946,  Senator  McCa:^thy  executed  an  affidavit  which 
was  filed  with  the  United  States  Senate  which  stated  in  part  as 
follows : 

The  Wisconsin  State  Republican  organization  and  various  McCarthy  For 
Senator  Committees  did,  I  understand,  spend  money  and  perform  acts  for  the 
promotion  of  my  candidacy.  As  to  the  amount  spent,  contributions  made,  etc., 
I  presently  have  no  knowledge  except  from  hearsay  and  rumor. 

I  exercised  no  supervision  or  control  over  the  Republican  State  Voluntary  Com- 
mittee nor  over  the  various  McCarthy  for  Senator  Clubs,  etc. 

Under  the  laws  of  Wisconsin  each  individual  or  committee  that  spent  over 
fifty  dollars  in  the  promotion  of  the  candidacy  of  anyone  must  file  a  complete 
verified  financial  statement  with  the  Secretary  of  State  of  Wisconsin.  I  don't 
believe  that  I  am  entitled  to  obtain  a  copy  of  such  statements.  I  assume,  how- 
ever, that  if  your  committee  will  write  the  Secretary  of  State  he  would  be  glad 
to  send  you  a  verified  copy  of  statements  filed  by  any  committee  or  club  which 
was  working  for  my  nomination  (Exhibit  141). 

Ray  Kiermas  sold  his  grocery  on  or  about  August  31, 1946,  after  the 
"Wisconsin  primary  election  in  which  Joseph  R.  McCarthy  won  the 
Republican  nomination  for  United  States  Senator.  Kiermas  opened 
an  account  with  the  Appleton  State  Bank  on  August  31,  1946,  bv  de- 
positing $9,000.00  (Exhibit  142),  the  proceeds  from  the  sale  of  the 
grocery.  On  September  6, 1946,  Kiermas  pledged  $20,000.00  par  value 
Central  of  Georgia  Railway  Company  bonds  with  the  Appleton  State 
Bank  as  additional  collateral  for  Senator  McCarthy's  loan  with  the 
Bank  (Exhibit  143).  On  the  same  date,  by  another  instrument 
(Exhibit  144),  he  pledged  100  shares  of  Burroughs  Adding  Machine 
Company  no  par  value  stock  and  50  shares  of  Hecla  Mining  Company 
as  security  for  the  Senator's  loan.  On  October  10, 1946,  Ray  Kiermas 
and  Delores  Kiermas  pledged  a  $5,000.00  real  estate  mortgage  with  the 
Bank  as  additional  security  for  the  Senator  McCarthy  loan  (Exhibit 
145). 

Upon  taking  the  oath  of  office  on  January  3, 1947,  Senator  McCarthy 
appointed  Kiermas  to  his  staff  and  he  is  Senator  McCarthy's  Adminis- 
trative Assistant  at  the  present  time.  He  has  drawn  a  salary  of  in 
excess  of  $7,000  each  year  and  Dolores  Kiermas,  his  wife,  has  also  been 
on  Senator  McCarthy's  payroll  since  1947  and  has  drawn  a  salary 
which  at  intervals  has  reached  approximately  $7,000  a  year.  Senator 
McCarthy  has  resided  in  Washington  with  ]Mr.  and  Mrs.  Kiermas  since 
January  1947. 

On  May  14,  1947  (Exhibit  146),  Kiermas  pledged  $10,000  of  his 
savings  account  with  the  Appleton  State  Bank  as  additional  collateral 


45 

for  Senator  McCarthy's  loan,  and  on  October  13,  1948,  pledged  100 
shares  of  Seaboard  Air  Line  Railroad  Company  stock  (Exhibit  147). 
On  February  17,  1919  (Exhibit  148),  Kiermas  pledged  100  shares  of 
Potomac  Electric  Power  Company  $10  par  value  common  stock  as 
additional  collateral  for  the  Senator's  loan. 

Beginning  early  in  1947  and  continuing  to  the  present  time,  there 
have  been  numerous  transactions  and  transfers  of  cash  between  Senator 
McCarthy  and  Kiermas,  and  it  is  impossible  to  determine  if  these  in- 
volve transactions  between  the  two. 

Of  course,  there  is  no  law  against  friendship  and  the  subcommittee 
feels  sure  that  Mr.  Kiermas'  acts  were  inspired  by  friendsliip  and 
loyalty.  However,  the  facts  as  set  forth  provoke  logical  questions 
as  to  wliether  Senator  McCarthy  took  advantage  of  Mr.  Kiermas, 
whether  Senator  McCarthy  promised  Kiermas  a  position  in  exchange 
for  political  and  financial  support  and  whether  Kiermas  has  been  re- 
quired to  furnish  Senator  McCarthy  financial  assistance  since  his 
employment  by  the  Senator.  Only  Senator  McCarthy  or  Mr.  Kiermas 
can  supply  the  answers. 

CONCLUSIONS    AND   RECOMMENDATIONS 

The  Subcommittee  itself  is  not  making  any  recommendations  in  this 
matter.  The  record  should  speak  for  itself.  The  issue  raised  is  one 
for  the  entire  Senate. 

This  report  and  the  Subcommittee  files,  of  course,  will  be  available 
to  the  Department  of  Justice  and  Bureau  of  Internal  Revenue  for  any 
action  deemed  appropriate  by  such  agencies. 

This  does  not,  however,  resolve  the  issue  presented  by  S.  Res.  187, 
which  is  a  matter  that  transcends  partisan  politics  and  goes  to  the  very 
core  of  the  Senate  Body's  authority,  integrity  and  the  respect  in  which 
it  is  held  by  the  people  of  this  country. 

II.  RESULTS  OF  INVESTIGATION  PURSUANT  TO 

S.  RES.  304 

On  April  10,  1952,  Senator  Joseph  R.  McCarthy,  of  Wisconsin,  sub- 
mitted S.  Res.  304,  calling  for  an  investigation  of  Senator  William 
Benton,  of  Connecticut,  by  the  Senate  Committee  on  Rules  and  Admin- 
istration (Exhibit  IG).  The  matter  was  referred  by  the  Secretary 
of  the  Senate  to  the  Rules  Committee,  and  subsequently  to  the  Sub- 
committee on  Privileges  and  Elections. 

Senator  McCarthy's  resolution  pertains  to  four  distinct  issues:  (1) 
ConnminisTa.  (That  Senator  Benton,  as  Assistant  Secretary  of  State 
(1945-47)  hired,  retained,  defended  or  associated  with  people  engaged 
in  communist  activities;  and  that  Senator  Benton  purchased  lewd 
and  communistic  literature  and  art  works  for  world-wide  distribution, 
and  also  sent  proofs  of  Amerika  Magazine  to  Moscow  for  approval 
and  editing,  all  in  an  attempt  to  discredit  America.)  (2)  Walter  Cos- 
griff.  (That  the  campaign  contribution  paid  by  Mr.  Cosgriff  to  Sen- 
ator Benton  in  1950  was  not  reported  by  Senator  Benton.)  (3)  In- 
come Tax  Returns.  (Benton's  returns  for  the  years  1947  through 
1950.)  (4)  MisreUaneous.  (Fake  television  portrayals  by  Senator 
Benton,  and  misuse  by  Benton  of  his  business  interests.) 

On  July  3,  1952,  after  several  postponements  occasioned  by  Senator 

J.  236027 4 


46 

McCarthy,  he  appeared  before  the  Senate  Subcommittee  on  Privileges 
and  Elections,  at  public  hearings,  and  amplified  the  charges  set  forth  in 
S.  Res.  304,  by  giving  what  he  described  as  "leads."  On  the  same  day, 
immediately  upon  the  completion  of  Senator  McCarthy's  testimony, 
Senator  Benton  testified  in  refutation  of  the  charges. 

Both  Senators  having  appeared  and  testified  on  S.  Res.  304,  -which 
testimony  is  a  matter  of  public  record,  and  Senator  Benton  having 
been  defeated  for  reelection  to  the  United  States  Senate,  it  would  ap- 
pear that,  as  to  any  action  the  Senate  might  take  on  the  charges,  the 
issues  raised  have  become  moot.  However,  the  donations  from  "Walter 
Cosgriff,  whether  for  campaign  purposes  or  otherwise,  should  still 
be  a  matter  of  interest  to  the  entire  Senate.  Although  the  donations 
are  not  very  large,  nevertheless,  the  issue  of  unreported  contributions 
seems  to  be  of  considerable  significance  at  this  time,  as  a  matter  for 
possible  remedial  legislation. 

Walter  Cosgriff,  a  banker  from  Salt  Lake  City,  Utah,  received  na- 
tional attention  when  President  Truman  submitted  his  nomination 
as  one  of  the  new  directors  of  the  Reconstruction  Finance  Corporation 
to  the  United  States  Senate  on  August  9,  1950,  at  a  time  when  said 
agency  and  its  directors  were  under  investigation  by  the  Senate  Bank- 
ing and  Currency  (Fulbri^ht)  Subcommittee.  There  had  been  no 
action  taken  on  the  nomination  by  the  Senate  when  it  recessed  on  Sep- 
tember 23,  1950,  apparently  because  the  RFC  Subcommittee  was  then 
considering  reorganizational  changes  in  the  RFC,  and  did  not  see  fit 
to  pass  upon  nominations  at  that  time.  Thereafter,  on  October  3, 
1950,  President  Truman  made  interim  appointments  to  the  RFC 
directorships,  and  AValter  Cosgriff  was  sworn  in  on  October  12,  1950. 
When  the  Senate  reconvened.  President  Truman  resubmitted  the  di- 
rectors' names,  including  Mr.  Cosgriff's.  However,  on  approximately 
February  20,  1951,  the  President  proposed  an  RFC  Reorganization 
Plan  calling  for  a  one-man  Administrator,  and  as  a  result,  the  nomi- 
nation of  Cosgriff  was  never  acted  upon.  Cosgriff  resigned  from  the 
RFC  on  May  4,  1951,  along  with  the  four  other  RFC  directors,  and 
they  were  succeeded  by  the  new  Administrator. 

WALTER   cosgriff's   TESTIMONY  BEFORE  THE  FULBRIGHT   COMMITTEE 

(MARCH  1951) 

The  matter  of  Walter  Cosgriff's  financial  transactions  with  Senator 
Benton  first  came  to  public  attention  during  the  hearing  held  by  the 
Senate  Subcommittee  on  the  RFC  of  the  Senate  Banking  and  Cur- 
rency Committee  on  March  19,  1951.  Mr.  Cosgriff,  who  was  then 
serving  as  an  RFC  Director,  was  questioned,  at  one  point,  concerning 
his  political  contributions  (pp.  1651-1658  of  the  printed  hearings  on 
the  Study  of  Reconstruction  Finance  Corporation  Lending  Policy). 
Cosgriff  first  answered  that  during  the  campaign  of  1950,  he  had  not 
contributed  to  anyone  outside  his  home  State  of  Utah ;  however,  upon 
further  examination  he  recalled  that  he  had  contributed  to  the  cam- 
paign of  Senator  Benton  of  Connecticut.  Mr.  Cosgriff  also  stated,  at 
the  March  19  hearing,  that  "Senator  Benton  was  instrumental,  so  he 
said,  or  at  least  I  asked  him  about  it  and  he  did  not  deny  it,  in 
getting  me  to  accept  the  job." 

[It  should  be  pointed  out  investigation  has  revealed  that  Senator 
Benton  did  not  list  the  Cosgriff  contribution  in  his  1950  report  on 
campaign  receipts  and  expenditures,  which  was  filed  with  the  Secre- 


47 

tary  of  the  Senate,  nor  is  it  reflected  in  any  report  filed  in  Connecticut 
by  Inde])endent  Committees  for  Benton.  Senator  Benton's  individual 
report,  tiled  wi<:h  the  Secretary  of  the  Senate,  lists  Senator  Benton  as 
receivinir  his  first  campaign  contribution  on  April  28, 1950  and  turning 
it  over  to  the  Independent  Voters  for  Benton  on  the  same  day.  Sen- 
ator Benton  ^vas  nominated  by  the  Democratic  State  Convention  of 
Connecticut  on  July  31,  1950;  however,  he  has  stated  that  he  did  not 
begin  his  real  compaigning  until  the  fall  of  1950.] 

SENATOR  BENTOX'S  TESTI:M0NY  BrFOIJE  SENATE  SUDCOMMIITEE  ON 
PRIVILEGES  AND  ELECTIONS   (SEPTEMBER  1951) 

The  matter  was  again  officially  discussed  on  September  15, 1951,  when 
Senator  Benton  himself  testified  before  the  Senate  Privileges  and 
Elections  Subcommittee  during  a  hearing  on  proposed  amendments 
to  the  Federal  Corrupt  Practices  Act.  It  was  at  this  time  that  Senator 
Benton  referred  to  Cosgriff's  contribution,  without  specifically  men- 
tioning it  by  name,  for  the  reported  purpose  of  showing  the  weakness 
in  existing  lavr,  and  in  furtlierance  of  a  rcconmiondation  that  legisla- 
tion should  be  enacted  to  make  such  gifts  reportable.  Benton  stated 
that  the  money  was  not  to  be  considered  a  campaign  contribution. 
His  testimony,  as  it  appears  on  page  45  of  the  printed  hearings,  is  as 
follows : 

I  had  a  personal  experience  with  the  weakness  of  the  law  as  it  is  now  on  the  books. 
Last  j'ear,  before  Congress  recessed,  I  got  a  small  contribution  from  a  friend  of 
mine  who  was  keenly  interested  in  my  efforts  to  accomplish  economies  in  govern- 
ment. He  was  especially  interested  in  my  activities  on  behalf  of  the  recommenda- 
tion of  the  Hoover  Commission.  Reeause  of  this  interest  he  gave  me  a  small  sum 
to  help  defray  these  costs  of  mailings  of  some  of  my  Senate  speeches  to  people  in 
my  State.  He  is  a  Republican,  and  he  expressly  told  me  that  the  money  was  not 
to  be  considered  a  campaign  contribution.  It  was  not,  under  the  law,  a  campaign 
contribution.  The  Senate  was  in  session  ;  I  had  not  begun  my  campaigning  and  I 
did  not  report  the  money.  Later  my  friend  appeared  before  a  Senate  conmiittee, 
and  on  being  questioned,  said  that  he  had  given  me  money.  We  were  both  placed 
in  an  embarrassing  position  and  I  was  subjected  to  attack  on  the  editorial  pages 
of  S(ime  Connecticut  newspapers.  Yet,  under  the  law,  I  had  done  nothing  wrong. 
I-'urther,  I  had  done  nothing  wrong  either  legally  or  morally  or  ethically.  I  give 
this  personal  experience  to  show  that  the  law  should  require  that  such  funds  are 
publicly  acknowledged.  This  public  acknowledgment  should  include  both  the 
donor  and  the  way  the  money  is  used. 

SENATOR  BENTON's  TESTIMONY  BEFORE  SENATE  SUBCOMMITTEE  ON 
PRIVILEGES  AND  ELECTIONS  (JULY  1952) 

On  July  o,  105-2,  Senator  Benton,  while  testifying  in  response  to 
Senator  McCarthy's  charges,  recalled  the  CosgrifF  transaction  and 
conceded  that  he  may  have  handled  the  matter  badly  (p.  300,  original 
transcript).  Senator  Benton  stated  that  he  was  acting  as  Chairman 
of  the  Small  Business  Subcommittee  when  Mr.  CosgrifF  apj^eared  to 
testify  before  it,  in  June  of  1950.  (Congressional  records  reflect  that 
;Mr.  CosgrifT  actually  testified  before  the  Senate  Banking  and  Currency 
Committee  on  June  28,  1950,  in  its  hearings  on  the  Small  Business  Act 
of  1950,  and  more  particularly,  with  respect  to  the  Bimson  Phin, 
whereby  the  government  would  insure  bank  loans  to  small  business.) 
Senator  Benton  further  testified  that  he  and  CosgrifF  had  a  social 
chat,  after  the  hearings.     Senator  Benton  stated  (p.  301)  that: 

To  my  surpri.se,  some  months  later  Mr.  Cos','riff  showed  up  in  Washington  again, 
and  we  resumed  our  acquaintance,  and  he  came  into  my  oifice  and  said,  "Senator, 
I  admire  you  for  the  leadership  you  have  taken  in  these  Hoover  proposaLs,"  ' 


48 

Senator  Benton  further  testified  (on  July  3,  1952)  that  Cosgriff  ex- 
plained that  he  was  a  Republican  and  would  therefore  be  unwilling  to 
contribute  to  his  campaign,  but  that  he  would  be  willing  to  aid  in  pub- 
licizing Benton's  speeches  on  the  Hoover  Commission  reorganization 
proposals  and  that  he  would  like  to  contribute  $300  for  th?.t  purpose. 

Senator  Benton  further  stated  that  he  called  in  his  secretary  to 
receive  the  contribution  as  he  did  not  like  to  take  cash  and  that  in 
Mr.  Cosgriff 's  presence  he  instructed  her  as  follows : 

Take  this  $300,  put  it  in  the  bank  account  which  you  run  covering  expenditures 
here  in  the  office — Pay  the  government  printer  for  the  reprints  of  my  Hoover 
Reorganization  speeches (See  p.  302.) 

Senator  Benton  claimed  that  Cosgriff  later  gave  him  an  additional 
sum  in  cash,  reportedly  collected  from  friends  of  Cosgriff  who  were 
interested  in  the  Hoover  proposals,  which  was  handled  in  the  same 
fashion,    Mr.  Benton  further  stated  (p.  303)  : 

This  was  before  any  thought  was  in  my  mind,  or  to  my  knowledge  in  his  mind 
that  he  would  ever  be  nominated  to  serve  on  the  RFC.  I  did  not  even  know 
of  his  nomination  until  after  it  had  taken  place. 

Senator  Benton  admitted  that  he  spoke  to  Senator  Fulbright  about 
Cosgriff,  when  the  latter's  confirmation  as  a  Director  of  the  RFC 
was  pending  before  the  Senate.  (This  was  in  the  early  part  of  the 
following  year.) 

Senator  Benton  read  into  the  record  during  the  July  3, 1952,  hearing, 
a  letter  from  Walter  Cosgriff  dated  June  4,  1952,  in  which  Mr.  Cos- 
griff stated  that  the  entire  contribution  could  not  have  exceeded  $600, 
and  that  the  money  was  specifically  earmarked  for  the  purpose  of 
supporting  the  Bimson  Plan  and/or  the  Hoover  Commission  pro- 
posals, more  specifically,  the  one  recommending  reorganization  of  the 
Office  of  the  Comptroller  of  the  Currency  (pp.  304-305). 

Senator  Benton  further  admitted  that  most  of  the  reprints  were 
actually  sent  to  Connecticut  (p.  315),  and  that  the  public  would 
never  have  known  about  the  Cosgriff  contribution,  had  Cosgriff  him- 
self not  disclosed  it,  as  he.  Senator  Benton,  would  never  have  revealed 
same  (p.  312). 

Senator  Benton  sent  a  letter  dated  July  4, 1952,  to  the  Subcommittee 
Chairman,  requesting  that  it  be  inserted  in  the  record,  and  stating 
that  he  had  now  ascertained,  after  talking  with  his  secretary,  that 
the  first  Cosgriff  contribution  was  in  the  form  of  a  bank  draft  drawn 
on  the  Continental  National  Bank  and  Trust  Company  of  Salt  Lake 
City,  Utah,  of  which  Mr.  Cosgriff  is  the  President.  Senator  Benton 
explained  that  this  was  the  reason  for  his  failure  to  give  Mr.  Cos- 
griff a  receipt,  as  the  draft  itself  was  the  receipt.  In  regard  to  the 
reprints,  Senator  Benton's  records  reflect  that  he  received  an  $873.90 
bill  from  the  Public  Printer  dated  August  4,  1950,  covering  102,000 
copies  of  his  speech  on  Government  Reorganization  (Exhibit  149), 
and  that  he  paid  for  it  by  check  of  August  7,  1952,  covering  this  and 
another  small  item  (Exhibit  150). 

STATEMENT  OF  WALTER  COSGRIFF    (NOVEMBER   11,   19  52) 

On  November  10  and  11,  1952,  Mr.  Walter  E.  Cosgriff  was  inter- 
viewed by  a  staff  investigator  at  Salt  Lake  City,  Utah.  Upon  com- 
pletion of  the  interview,  he  executed  a  signed  statement,  which  is  on 
file. 


49 

In  this  statement  Mr.  Cosgriff  disclosed  that  he  had  had  correspond- 
ence with  Senator  Benton  commencing  with  the  early  part  of  1950  in  re- 
gard to  the  reorganization  ])lan  for  the  Office  of  tlie  Com])troller  of 
the  Currency,  with  whicli  office  Mr.  Cosgriff  had  been  engaged  in  an 
extended  dispute.  Mr.  Cosgriff  stated  that  he  had  written  to  Senator 
Benton,  after  he  had  discovered  that  Senator  Benton  was  one  of  the 
greatest  proponents  of  the  plan,  and  received  replies  from  the  Sen- 
ator. Mr.  Cosgriff  further  advised  that  he  first  met  Senator  Benton 
on  June  28,  1950,  when  he  testified  before  the  Senate  Banking  and 
Currency  Committee  on  behalf  of  the  Bimson  Plan.  Mr.  Cosgriff 
stated : 

After  my  testimony  on  the  28th,  most  of  wliich  occurred  before  Senator  Benton, 
the  other  members  of  the  Committee  had  left  the  room  for  one  reason  or  another 
(Senator  Maybank  having  h^ft  during  the  hearing),  1  tallied  witli  Senator  Benton 
both  in  the  hearing  room  and  our  conversation  continued  into  his  othce.  He 
complimented  me  on  my  testimony  and  during  the  conversation  we  started  to 
talk  about  the  Reorganization  Plan  I  of  1950,  specifically  the  part  referring  to  the 
OfTice  of  Comptroller  of  the  Currency.  Senator  Benton  told  me  he  was  going  to 
do  some  work  on  both  the  Reorganization  Plan  and  the  Bimson  Plan  and  other 
Hoover  Commission  Proposals,  and  it  was  at  that  time  on  June  28,  19.50  that 
I  expressed  a  desire  to  pay  for  the  cost  of  the  printing  and  the  mailing  .  .  . 

Mr.  Cosgriff  said  that  he  was  called  back  to  Washington  about  July 
10  or  12,  for  consultation  at  the  White  House  at  which  time  he  was 
advised  he  was  being  considered  for  an  RFC  Directorship.  Mr.  Cos- 
griff further  advised  that  it  was  then,  when  he  was  in  Washington  for 
approximately  10  days,  that  he  gave  Senator  Benton  $300  in  the  first 
of  several  visits  to  Senator  Benton's  office  during  that  period.  Mr. 
Cosgriff  stated  that  he  gave  Senator  Benton  $300  at  tliat  time,  in  cash, 
to  help  defray  the  cost  of  disseminating  literature  on  the  Hoover  Pro- 
posals, and  he  is  quite  definite  about  the  fact  that  he  "never  purchased 
a  bank  draft  on  the  Continental  National  Bank  and  Trust  Company  to 
Senator  Benton  at  any  time."  Upon  giving  (he  cash  to  Senator  Benton, 
Mr.  Cosgriff  states  that  Senator  Benton  called  in  his  secretary  and 
told  her  to  deposit  the  money  to  his  special  account.  Mr.  Cosgriff 
further  states  that  he  again  returned  to  Washington  in  the  middle  of 
August,  whereujion  he  wont  to  Senator  Bonton.'s  office  and  asked  him 
how  he  was  getting  along  with  the  distribution  of  the  literatui-e,  and 
whether  all  the  money  had  been  used  up  yet;  that  Senator  Benton  told 
him  the  money  had  been  used,  whereupon  Mr.  Cosgr-iff  gave  Senator 
Benton  an  additional  $300.    Mr.  Cosgriff  advised  in  his  statement: 

I  told  Senator  Benton  I  had  collected  part  of  this  sum  from  other  bankers  but 
that  was  actually  not  the  case.  Although  I  intended  to  later  collect  it  but  never 
did. 

The  additional  $300  was  found  to  be  covered  by  a  check  dated  August 
21,  1950,  to  the  order  of  William  Benton  (see  Exhibit  151)  and  was 
deposited  in  the  Riggs  National  Bank  of  Washington,  D.  C,  on  Sep- 
tember 19,  1950,  bearing  the  bank's  stamp  of  September  20.  Mr. 
Cosgriff  stated  that  he  presumed 

.  .  .  that  the  mailings  I  was  paying  for  were  to  be  made  to  banks  and  manu- 
facturing companies,  possibly  Cliambers  of  Commerce  or  fraternal  organizations 
or  individuals  interested  in  this  plan  and  in  position  to  do  something  about  it. 

Mr.  Cosgriff  also  said  in  his  November  11,  1952  statement: 

I  can  definitely  state  that  I  did  not  discuss  my  RFC  appointment  with  Senator 
Benton  at  any  time  prior  to  its  becoming  public  knowledge,  which  was  sometime 
in  August  1950.    After  it  was  public  knowledge,  sometime  in  Augiist  of  1950,  I 


50 

did  discuss  the  appointment  with  Senator  Benton  with  regard  as  to  whether  or 
not  I  should  accept  it,  although  at  no  time  did  I  ask  him  to  exert  any  influence  in 
my  behalf.    If  he  did  such  a  thing,  it  was  unknown  to  me. 

As  far  as  my  testimony  before  the  Fulbright  Committee  is  concerned,  at  the 
time  I  test!  tied  that  I  had  contributed  to  Senator  Benton's  campaign  I  did  not 
understand  the  fine  point  legal  difference  between  a  campaign  contribution  and 
my  paying  for  the  distribution  of  the  literature.  Therefore,  I  considered  the 
entire  thing  to  have  something  to  do  with  politics  and  being  in  the  nature  of  a 
political  contribution.  Also  during  the  Fulbright  testimony  any  referral  I  may 
have  made  referring  to  urgings  by  Senator  Benton  to  take  the  job,  took  place 
subsequent  to  the  time  my  appointment  became  public  knowledge ;  as  well  as  to 
further  urgings  by  Senator  Benton  to  stay  on  the  job  despite  the  fact  that  no 
hearings  had  been  scheduled  regarding  confirmation  of  the  appointment,  as  well 
as  several  other  opportunities  to  quit.  I  discussed  with  Senator  Benton  at  sev- 
eral times  as  to  whether  I  should  stay  on  during  the  period  from  October  1950 
to  May  1951. 

Mr.  Cosgriff  further  stated  that  in  regard  to  his  letter  of  June  4, 
1952,  read  by  Senator  Benton  into  the  July  1952  hearings,  that  it  was 
in  response  to  a  letter  of  May  28, 1952,  and  a  phone  call  of  June  2, 1952, 
both  from  Senator  Benton. 

In  addition  to  the  signed  statement,  the  investigator  from  this  staff 
examined  with  Mr.  Cosgriff's  permission,  the  personal  and  office  diaries 
of  INIr.  Cosgriff  kept  during  the  period  that  he  was  an  EFC  Director 
(October  12,  1950  to  May  4,  1951).  The  diary  contained  several  ref- 
erences to  meetings  with  Senator  Benton,  including  the  following : 

"March  7,  1951  (office  diary)  12:30— Lunch  with  Senator  Benton.  Call  him 
from  floor."  (Personal  Diary)  "Had  lunch  with  Senator  Benton  in  the  res- 
taurant at  the  Capitol  Building.  He  stated  he  was  disturbed  about  what  was 
happening  to  RFC  in  general  and  regretted  the  part  he  had  played  in  my  employ- 
ment by  the  organization.  I  told  him  I  did  not  feel  he  was  in  any  way  responsible 
as  I  should  be  old  enough  to  take  care  of  myself.  He  offered  to  do  anything  he 
could  to  be  of  assistance." 

TESTIMONY  OF  SENATOR  BENTON  ON  NOV.  24,  1952 

The  Crosgriff  statement  of  November  11, 1952,  and  the  excerpts  from 
the  diary  were  introduced  into  the  executive  session  hearings  held 
before  this  Subcommittee  on  November  24,  1952,  relating  to  the  Cos- 
griff matter.  At  this  hearing.  Senator  Benton,  who  testified,  identi- 
fied a  deposit  slip  of  September  19,  1950  to  an  account  in  the  Riggs 
National  Bank  of  AVashington,  D.  C.  under  the  name  of  William  Ben- 
ton (Exhibit  152).  This  slip  lists  under  "Checks  Deposited,"  a  $300 
item  on  the  Continental  National  Bank  and  Trust  Company  of  Salt 
Lake  City,  which  Senator  Benton  stated  was  the  August  21, 1950  check 
of  Mr.  Cosgriff  and,  in  addition,  it  shows  a  deposit  of  $500  in  cur- 
rency, which  is  the  only  1950  consequential  currency  deposit  in  this  ac- 
count during  this  period.  The  $500  was  identified  by  Senator  Benton 
to  be,  in  part,  the  $300  cash  contribution  of  Mr.  Cosgriff,  made  in 
July  1950  (p.  48  original  transcript).  The  ledger  sheets  covering 
Senator  Benton's  account  at  the  Riggs  National  Bank  is  attached  as 
Exhibit  153. 

At  the  outset  of  the  testimony  of  November  24, 1952,  Senator  Benton 
stated  that  the  first  time  word  ever  reached  him  that  Mr.  Cosgriff  had 
a  special  interest  in  the  Office  of  the  Comptroller  of  the  Currency  was 
that  very  morning  (November  24)  when  he  was  shown  Cosgriff's 
November  11  statement  (p.  7). 

Senator  Benton  then  stated  at  this  hearing  that  Mr.  Cosgriff  told 
him,  at  a  date  of  which  he  is  uncertain,  that  he  had  been  offered  the 


I 


61 

RFC  appointment  and  was  considerin<2;  taking  it.     Senator  Benton 
specifically  stated  in  regard  thereto  (pp.  22-23)  : 

Just  as  Walter  Binison,  I  believe,  urged  him  to  take  it,  I  formed  a  high  opinion 
of  hira.  I  had  a  high  opinion  of  his  testimony  before  the  Banking  and  Currency 
Committee ;  here  he  is,  a  rich  and  successful  private  banker.  I  said  "This  would 
be  a  great  experience  for  you  to  come  down  here  to  Washington  and  get  this 
experience".  ...  He  was  a  Republican  banker  and  nominated  as  a  Republican 
member  of  the  Board.  His  friendly  interest  in  these  mailings  of  mine  quite 
naturally  generated  a  friendly  interest  on  my  part  in  him,  and  I  thought  he 
looked  like  a  good  appointment. 

I  don't  know  who  else  besides  Senators  Watkins  and  Thomas  may  have  talked 
to  him,  I  don't  know  who  recommended  him  to  Dawson.  I  don't  know  the 
sequence  by  which  lie  was  offered  the  appointment,  and  to  the  best  of  my  recol- 
lection I  have  never  been  told  it. 

Further  in  his  testimony  Senator  Benton  states  (p.  24) : 

I  did  not  hear  any  more  about  Cosgriff  or  what  had  happened  until  I  was 
elected  and  was  back  here  in  the  Spring  at  which  time  he  came  in  to  see  me,  as 
his  diary  shows,  wanting  to  know  whether  I  thought  the  Reorganization  Plan 
on  the  RFC  was  going  to  go  through  abolishing  these  5  fellows  and  setting  up  only 
one  of  them,  or  whether  they  were  going  to  be  confirmed.  I  said,  "I  dcn't  know. 
I  will  ask  Senator  Fulbright  about  it". 

The  reason  Senator  Fulbright  is  so  well  informed  in  this  testimony  is  I 
went  to  him  and  very  frankly  told  him  I  said  "I  want  you  to  know  I  have  a 
personal  interest  in  this  man  and  he  contributed,  paid  for  some  of  the  mailings 
on  the  Hoover  Reorganization  proposals  that  I  sent  out  last  year". 

To  cast  further  light  on  whether  Senator  Benton  knew  anything 
about  Mr.  Cosgriff's  RFC  nomination  prior  to  August  9,  1950,  when 
President  Truman  actually  submitted  the  nomination  to  the  United 
States  Senate,  the  following  testimony  of  Senator  Benton's  given  at  the 
November  24  executive  session  may  be  considered  pertinent  (pp. 
33-34): 

When  he  first  talked  to  me  about  the  RFC  matter,  there  was  a  question  of  clear- 
ance, with  Senators  Thomas  and  Watkins,  by  the  White  House,  before  they  could 
offer  him  the  job  .  .  .  My  recollection  from  the  first  I  heard  of  him  con- 
sidering this  job  was  that  there  was  a  good  deal  of  maneuvering  and  he  had 
to  be  cleared  with  Senators  Thomas  and  Watkins,  and  it  was  during  that  period, 
it  was  my  recollection,  he  asked  me  about  whether  1  thought  it  would  be  a  good 
thing  for  him  to  take  the  job,  if  he  could  get  it,  and  I  thought  it  would  be  a  very 
fine  thing,  I  said,  if  he  could  get  it. 

Althougli  it  would  appear  from  the  above  testimony  that  Senator 
Benton  knew  and  discus.sed  the  pending  RFC  appointment  with  Mr. 
Cosgritf,  prior  to  its  final  submission  to  the  Senate  and  the  simultaneous 
public  announcement  on  August  9,  1950,  nevertheless.  Senator  Benton, 
at  anotlier  point  in  tlie  testimony,  stated  that  just  because  it  became 
public  knowledge  in  August  did  not  mean  he  (Senator  Benton)  knew 
about  it  then,  and  that  prior  to  his  (Mr.  Cosgriff's)  appointment  he 
never  heard  of  it  ( pp.  41-42) . 

Senator  Benton  further  stated  in  the  testimony  that  in  1950  he  re- 
ceived similar  payments  to  this  which  he  handled  in  a  similar  manner. 
Senator  Benton  testified  on  this  point  (p.  49)  : 

In  10.50  I  had  some  other  gifts  made  to  me  on  which  I  sought  and  received 
counsel  which  were  spent  similarly  on  items  that  were  adjudged  to  be  non- 
campaign  items. 

However,  Senator  Benton  declined  to  disclose  any  further  details. 
In  view  of  the  fact  that  Senator  Benton  was  unsuccessful  in  the  recent 
election  and  was  no  longer  a  member  of  the  Senate,  he  was  not  pressed 
further. 


52 

CONCLUSIONS  AND  RECOMMENDATIONS 

On  the  basis  of  the  evidence  submitted,  we  can  only  concur  with 
Senator  Benton  that  the  matter  of  the  Cosgriff  donations  was  badly 
handled.  If  the  monies  were  intended  to  be  contributions  to  Benton's 
political  campaign,  as  indicated  in  the  original  testimony  of  Mr.  Cos- 
griff before  the  Fulbright  Committee,  it  would  appear  that  the  failure 
to  report  this  contribution  in  his  statement  filed  on  1950  Campaign 
Receipts  and  Expenditures  with  the  Secretary  of  the  Senate,  placed 
Senator  Benton  in  violation  of  Section  307  of  the  Federal  Corrupt 
Practices  Act,  which  requires  that  a  senatorial  candidate  shall  file  a 
correct  and  itemized  account  of  each  contribution  received  by  him,  or 
by  any  person  for  him,  with  his  knowledge  or  consent,  from  any  source, 
in  aid  or  support  of  his  candidacy  for  election,  or  for  the  purpose  of 
influencing  the  result  of  the  election,  together  with  the  name  of  the 
person  who  has  made  such  contribution",  and  Section  302  defines 
"contribution"  to  include  "a  gift,  subscription,  loan,  advance  or  de- 
posit of  money  or  anything  of  value  .  .  ." 

If  the  sums  contributed  by  Walter  Cosgriff  were  not  intended  as 
campaign  contributions,  but  donations  particularly  earmarked  to  be 
used  for  a  specific  purpose,  as  later  asserted  by  both  Cosgriff  and 
Benton,  namely,  to  pay  the  cost  of  printing  and  mailing  Senator 
Benton's  speeches  on  Government  Reorganization,  we  still  have  the 
issue  of  whether  Senator  Benton's  acceptance  of  contributions,  no 
matter  what  the  purpose,  from  a  person  who  was  then  under  either 
presidential  consideration,  or  actual  nomination  for  an  office  in  the 
United  States  Government  requiring  confirmation  by  the  United  States 
Senate,  was  ethical  and  proper. 

Although  there  appears  to  be  some  conflict  in  the  testimony  and 
statements  of  Senator  Benton,  as  to  whether  he  had  any  knowledge 
that  Cosgriff  was  to  be  nominated  to  the  RFC  Directorship  at  the 
time  of  receiving  the  first  contribution  in  July  1950,  he  was  on  public 
notice  at  least  on  August  9,  1950,  if  not  before,  when  the  President 
announced  Mr.  Cosgriff's  nomination ;  therefore,  his  acceptance  of  an 
additional  contribution  by  check  dated  August  21, 1950,  places  Senator 
Benton  in  a  rather  inconsistent  position.  Senator  Benton  should  have 
known  that  as  a  member  of  the  United  States  Senate  he  would  be 
called  upon  to  exercise  a  vote  should  the  matter  of  Cosgriff's  nomina- 
tion reach  the  floor.  Although  Senator  Benton  is,  by  his  own  state- 
ment, a  wealthy  man,  and  therefore  not  reliant  upon  such  sums  as 
Mr.  Cosgriff  gave  him,  this  would  not  seem  to  change  the  principle 
involved. 

A  law  requiring  Members  of  Congress  to  publicly  acknowledge  the 
acceptance  of  an^  funds  given  to  them  in  connection  with  the  responsi- 
bilities and  duties  of  their  office,  would  certainly  place  the  use  of 
these  funds  for  legitimate  purposes  free  from  any  question.  Such 
a  law  should  require  the  listing  of  the  donor,  donee,  and  purpose,  if 
any,  and  should  have  some  criminal  sanction  attached  which  would 
discourage  a  surreptitious  handling  of  such  funds.  It  is  herewith 
suggested  that  the  Congress  give  special  consideration  to  legislation 
in  this  field. 


APPENDIX 


(53> 


APPENDIX 


Exhibits  Page 

1.  S.  Res.  187 59 

2.  Letter  dated  Sept.  17, 1951,  from  Senator  McCarthy  to  Senator  Gillette.  60 

3.  Letter  dated  Sept.  25, 1951,  from  Senator  Gillette  to  Senator  McCarthy.  61 

4.  Letter  dated  Oct.  1,  1951,  from  Senator  Gillette  to  Senator  McCarthy.  61 

5.  Letter  dated  Oct.  4,  1951,  from  Senator  McCarthy  to  Senator  Gillette.  61 

6.  Letter  dated  Dec.  6,  1951,  from  Senator  McCarthy  to  Senator  Gillette.  62 

7.  Letter  dated  Dec.  6,  1951,  from  Senator  Gillette  to  Senator  McCarthy..  63 

8.  Letter  dated  Dec.  7,  1951,  from  Senator  McCarthy  to  Senator  Gillette.  63 

9.  Letter  dated  Dec.  11,  1951,  from  Senator  Gillette  to  Senator  McCarthy.  64 

10.  Letter  dated  Dec.  19,  1951.  from  Senator  McCarthy  to  Senator  Gillette.  64 

11.  Lt>tter  dated  Dec.  21, 1951,  from  Senator  Gillette  to  Senator  McCarthy.  65 

12.  Letter  dated  Jan.  4,  1952,  from  Senator  McCarthy  to  Senator  Gillette.  66 
12A.  Letter  dated  Jan.  10,  1952,  from  Senator  Gillette  to  Senator  Mc- 
Carthy   66 

13.  Letter  dated  Mar.  21, 1952,  from  Senator  McCarthy  to  Senator  Hayden.  67 

14.  S.   Res.  300 68 

15.  Record  of  cases  of  expulsion,  exclusion,  and  censure . 69 

16.  S.   Res.  304 78 

17.  Letter  dated  May  7,  1952.  from  Senator  Gillette  to  Senator  McCarthy.  79 

18.  letter  dated  May  8,  1952,  from  Senator  McCarthy  to  Senator  Gillette.  80 

19.  Letter  dated  May  S,  1952,  from  Senator  McCarthy  to  Senator  Gillette..  82 

20.  Letter  dated  May  10. 1952,  from  Senator  Gillette  to  Senator  McCarthy.  82 

21.  Letter  dated  May  11,  1952,  from  Senator  McCarthy  to  Senator  Gillette.  83 

22.  Letter  dated  May  13, 1952,  from  Senator  Gillette  to  Senator  McCarthy.  84 

23.  Letter  dated  May  28,  1952,  from  Senator  Hayden  to  Senator  Gillette..  84 

24.  Letter  dated  June  9,  1952,  from  Senator  Gillette  to  Senator  McCartliy.  86 

25.  Letter  dated  June  11,  1952.  from  Senator  McCarthy  to  Senator  Gillette.  86 

26.  Letter  dated  June  12, 1952,  from  Senator  McCarthy  to  Senator  Gillette.  87 

27.  Letter  dated  June  18.  1952.  from  Senator  Gillette  to  Senator  McCarthy.  87 

28.  Letter  dated  June  19, 19.52,  from  Senator  McCarthy  to  Senator  Gillette.  88 

29.  Letter  dated  June  20,  1951:,  from  Senator  Gillette  to  Senator  McCarthy^  91 

30.  Letter  dated  June  23.  1J'.">2,  from  Senator  Benton  to  Senator  Gillette-.  91 

31.  Letter  dated  June  23. 1952,  from  Senator  Gillette  to  Senator  McCarthy.  92 

32.  Letter  dated  June  24,  1952,  from  Mary  B.  Driscoll  to  Senator  Gillette.  92 

33.  Telegram  dated  June  25,  1952,  from  Senator  Gillette  to  Senator  Mc- 

Carthy   93 

34.  Letter  dated  July  1,  1952,  from  Senator  McCarthy  to  Senator  Gillette.  93 

35.  Telegram  dated  Sept.  8, 1952,  from  Poorbaugh  to  Senator  Gillette 93 

36.  Letter  dated  Sept.  9,  1952,  from  Senator  Welker  to  Senator  Hayden___  94 

37.  Letter  dated  Sept.  10,  1952,  from  Senator  Gillette  to  Senator  Hayden.  95 
88.  Letter  dated  Nov.  7,  1952,  from  Mr.  Cotter  to  Senator  McCarthy 96 

39.  Letter  dated  Nov.  7,  1952,  from  Mr.  Cotter  to  Senator  Benton 96 

40.  Letter  dated  Nov.  10,  1952,  from  Mr.  Kiermas  to  Mr.  Cotter 97 

40A.  Envelope  addressed  to  Mr.  Cotter 97 

41.  Letter  dated  Nov.  21,  1952,  from  Senator  Hennings  to  Senator  Mc- 

Carthy   98 

42.  Telegram   dated  Nov.  21,  1952,  from   Senator  Hennings  to   Senator 

McCarthy 99 

43.  Letter  dated  Nov.  21,  1952,  from  Senator  Hennings  to  Senator  Benton. _  100 

44.  Letter    dated    Nov.    28,    1952,    from    Senator    McCarthy    to    Senator 

Hennings  101 

45.  Letter  dated  Dec.  1,  1952,  from  Senator  McCarthy  to  Senator  Hennings-  102 

46.  Letter  dated  Oct.  5,  1951,  from  Senator  Benton  to  Senator  Gillette 105 

47.  Press  release  of  Buckley  dated  Dec.  27,  1951 106 

(65) 


56 

Page 

47A.  Schedule — Toll  calls  between  Buckley  et  al 108 

48.  Letter  from  Poorbaugh  to  Mr.  Cotter 109 

49.  Letter  dated  Apr.   5,   1948,   from  Appleton   State  Bank  to   Senator 

McCarthy 110 

50.  Letter  dated  Sept.  29,  1948,  from  Appleton  State  Bank  to  Senator 

McCarthy 111 

51.  Letter  dated  Oct.  9,  1948,  from  Senator  McCarthy  to  Appleton  State 

Bank 111 

52.  Letter  dated   Oct.   13,  1948,  from  Appleton  State  Bank  to   Senator 

McCarthy 111 

53.  Letter  dated  Oct.  18,  1948,  from  Senator  McCarthy  to  Appleton  State 

Bank 112 

54.  Letter  dated  Oct.  20,  1948,  from  Appleton   State  Bank  to  Senator 

McCarthy 112 

55.  Lustron  check  of  Nov.  12,  1948,  to  Joseph  R.  McCarthy 113 

56.  Letter  dated  Dec.  16,  1948,  from  John  R.  Price  to  Senator  McCarthy..  114 

57.  Letter  dated  Jan.  5,  1949,  from  Senator  McCarthy  to  John  R.  Price—  114 

58.  Letter  dated  Mar.  2,  1949,  from  John  R.  Price  to  Senator  McCarthy..  114 

59.  Letter  dated  Mar.  10,  1949,  from  Senator  McCarthy  to  John  R.  Price__  115 

60.  Letter  dated  Aug.  25,  1950,  from  Senator  McCarthy  to  Appleton  State 

Bank 115 

61.  Letter  dated  Oct.  3,  1951,  from  Senator  McCarthy  to  Appleton  State 

Bank 116 

62.  Letter   dated   Oct.   5,   1951,   from  Appleton   State   Bank   to   Senator 

McCarthy 116 

64.  National  Savings  &  Trust  savings  ledger  No.  62950  for  Joe  McCarthy—  117 

65.  National  Savings  &  Trust  savings  deposit  slip  dated  Sept.  7,  1950,  for 

Joe   McCarthy 118 

66.  Alvin  Bentley  check  for  $3,000  to  Joseph  R.  McCarthy,  dated  Sept.  5, 

1950 119 

67.  Ledger  of  account  of  Mrs.  Ax-villa  P.  Bentley,  Riggs  Bank 120 

68.  Letter  dated  Sept.  29,  1950,  from  Senator  McCarthy  to  National  Sav- 

ings &  Trust 121 

69.  National  Savings  &  Trust  check  to  Van  Straten,  dated  Sept.  29,  1950—  122 

70.  Van  Straten  regulated  grain  a/c  at  Wayne-Hummer  &  Co 123 

71.  Wayne-Hummer  check  to  Van  Straten  for  .$10,000,  dated  Nov.  27,  1950-  124 

72.  Riggs  Bank  deposit  ticket  of  Senator  McCarthy  dated  Dec.  4,  1950 125 

73.  Van  Straten  regulated  grain  a/c  at  Wayne-Hummer  &  Co 126 

74.  Wayne-Hummer  check  to  Van  Straten  for  $1,.50(),  dated  Dec.  19,  1950—  127 

75.  Wayne-Hummer  check  to  Van  Straten  for  $3,000,  dated  Jan.  16,  1951—  128 

76.  Appleton  Bank  deposit  slip  dated  Dec.  19,  1950,  for  Van  Straten 129 

77.  Appleton  Bank  deposit  slip  dated  Jan.  16,  1951,  for  Van  Straten 130 

78.  Appleton  Bank  12-page  checking  ledger  for  Van  Straten 131 

79.  Schedule — Security  Sales— Henry  J.  Van  Straten  1946-52,  Wayne  Hum- 

mer &  Co.,  and  Paine,  Webber,  Jackson  and  Curtis 143 

80.  Schedule — Van  Straten  regulated  grain  a/c  at  Paine,  Webber,  Jackson 

&  Curtis 144 

81.  Schedule — Van  Straten  regulated  grain  a/c,  Wayne  Hummer  &  Co 145 

82.  Riggs  mail  deposit  slip  for  Senator  McCartby  special  account,  dated 

May  11,  1950 146 

83.  Riggs  mail  deposit  slip  for  Senator  McCarthy  special  account,  dated 

June  2.'5,  1950 147 

84.  Rigirs  checking  ledger  for  Senator  McCarthy  special  account,  7  pages—  148 

85.  43  Riggs  deposit  slips  for  Senator  McCarthy  special  account,  date  start- 

ing May  4,  1950 155 

86.  Riggs  checking  ledger  for  Senator  McCarthy,  39  pages 178 

87.  Riggs  checking  ledger  for  Ray  Kiermas,  21  page: 217 

88.  Riggs  deposit  slip  for  Senator  McCarthy,  dated  Aug.  10,  1949 238 

89.  Schedule,  Senator  McCarthy  gain  or  loss  in  194.^  sale  of  securities 239 

90.  Schedule,    Senator   McCarthy   funds   received  from   Wavne-Hummer, 

1944 1. 240 

91.  Schedule — Senator  McCarthy's  loan  a/c,  Appleton  State  Bank 241 

92.  Senator  McCarthy  collateral  register  No.  2.377,  Appleton  State  Bank—  243 

93.  Senator  McCarthy  collateral  pledge  to  Appleton  State  Bank 244 


67 

Page 

94.  Letter  dated  Nov.  28,  1047,  from  Schuh  to  Senator  McCarthy 245 

95.  Letter  dated  Jan.  4.  1049,  from  Sehiih  to  Senator  McCarthy,  2  pages__  246 

96.  Letter  dated  Sept.  29,  1048,  from  Schiih  to  Senator  Mcl^arthy 248 

97.  Letter  dated  Jan.  19,  1949,  from  Schuh  to  Senator  McCarthy 249 

97A.  Letter  dated  Jan.  25,  1949,  from  Senator  McCarthy  to  Schuh 250 

97B.  Letter  dated  Feh.  4,  1940,  from  Schuh  to  Senator  McCarthy 251 

98.  Letter  dated  June  2,  1949,  from  Schuh  to  Senator  McCarthy 252 

98A.  letter  dated  June  4,  1940,  from  Senator  McCarthy  to  Schuh 253 

98B.  Letter  dated  Sept.  20,  1049,  from  Schuh  to  Senator  McCarthy 254 

98C.  Letter  dated  Nov.  25.  1949,  from  Schuh  to  Senator  McCarthy 255 

98D.  Letter  dated  Jan.  19,  1950,  from  Schuh  to  Senator  McCarthy 256 

98E.  Letter  dated  May  2,  1950,  from  Schuh  to  Senator  McCarthy 257 

99.  Letter    dated    Sept.    14,    1951,    from    assistant    cashier    to    Senator 

McCarthy 258 

100.  CoUateral  schedule — Senator  McCarthy's  loan,  Appleton  State  Bank—  259 

101.  Election  tinancial  statements  of  Committee  to  Elect  Joseph  R.  Mc- 

Carthy, filed  Aug.  8  and  18,  1944 260 

102.  Summary   schedule — Funds  deposited   Riggs   Bank  by   Senator  Mc- 

Carthy and  Ray  Kierinas 266 

103.  Summary  schedule — Deposits,  Ray  Kiermas,  Rigss  Bank 267 

104.  Schedule — Transfer  of  funds  between  Senator  McCarthy  and  Kiermas-  268 

105.  Letter  dated  Apr.  15,  1947,  from  Senator  McCarthy  to  Schuh 269 

106.  Letter  dated  July  12,  1947,  from  Senator  McCarthy  to  Schuh 270 

107.  Letter  dated  Sept.  2,  1947,  from  Schuh  to  Senator  McCarthy 271 

108.  Letter  dated  Sept.  9.  1947,  from  Kiermas  to  Schuh 272 

109.  Letter  dated  Oct.  16,  1947,  from  Schuh  to  Senator  McCarthy 273 

109A.  Letter  dated  Apr.  5,  1948,  from  Schuh  to  Senator  McCarthy,  2  pages_  274 

109B.  Letter  dated  Apr.  16,  104S,  from  Schuh  to  Senator  McCarthy 276 

110.  Letter  dated  Mar.  5, 1051,  from  Tibhetts  to  Senator  McCarthy,  2  pages.  277 

111.  Dani.'l  F.  Rice  customers  card  for  William  P.  McCarthy,  2  pages 279 

112.  Appleton  State  Bank  check  to  Kiermas  for  $5,000  dated  Aug.  25,  1948-  281 

113.  Riggs  checking  ledger  sheet  for  Kiermas 282 

114.  Schedule — William  P.  McCarthy  grain  transactions 283 

115.  Daniel  F.  Rice  check  No.  5751  for  $10,000  dated  Fob.  10.  1949 284 

116.  Appleton  State  Bank  check  to  Wayne  Hummer  for  $12,613.10  dated 

Mar.  3.  1940 285 

117.  Appleton  State  Bank  collateral  register  No.  2937  dated  April  4,  1949, 

for  Senator  McCarthy 286 

117A.  Wa.vne  Hummer  ledger  of  Senator  McCarthy  showing  stock  pur- 
chased   287 

118.  William  P.  McCarthy  commodity  account  with  Daniel  F.  Rice  Co_.._  288 

119.  First  National  Bank  of  Chicago,  check  to  D.  F.  Rice  &  Co.  for  $2,000 

dated  Jan.  20.  1951 289 

120.  D.  F.  Rice  check  No.  11102  for  William  P.  McCarthy  dated  Mar.  9, 1951, 

for  $7,150.  2  pages 290 

121.  Julia  Connolly  grain  account  schedule  for  1951 291 

122.  Julia  Connolly  commodity  account  with  Daniel  F.  Rice  &  Co 292 

123.  First  Wisfonsin  National  Bank  savings  account  ledger  for  William  P. 

McCarthy,  2  pages 293 

124.  First  Wisconsin  National  Bank  savings  account  ledger  for  William 

P.  and  Julia  McCarthy 295 

125.  First  Wisconsin  National  Bank  check  to  William  P.  McCarthy  for 

$3,124.72.  dated   June  24,  1048 296 

126.  Transcript,  First  National  Bank  of  Chicago  savings  account  ledger  for 

Julia  and  William  P.  McCarthy,  3  pages 297 

127.  Wisconsin   income  tax   return  for   Senator   McCarthy,   dated  1949, 

15   pages 300 

128.  Schedule  of  fdione  calls  to  Kohlberg,  2  pages 311 

129.  Wisconsin  statutes,  10.39 313 

130.  Wisconsin  statutes,  1949,  3  pages 314 

131.  Appleton  Bank  loan  ledger  of  Senator  McCarthy,  Feb.  13,  1945-July 

20,  1946 317 

132.  Appleton  Bank  che^-k  to  Wayne-Hunmier  for  $140,176.06 318 

133.  Appleton  Bank  omnibus  stock  trading  account  at  Wayne-Hummer, 

3  pages 319 

134.  Letter  dated  Apr.  22,  1947,  from  Schuh  to  Senator  McCarthy 322 


58 

Page 

135.  Letter  dated  Mar.  14,  1949,  from  Schuh  to  Senator  McCarthy 323 

136.  Election  financial  statements  of  Joseph  R.  McCarthy  filed  Aug.  8  and 

19,  1944,  5  pages 324 

137.  Questionnaire  dated  Sept.  20,  1944,  of  Joseph  R.  McCarthy  filed  with 

Special  Committee  to  Investigate  Senatorial  Campaign  Expendi- 
tures, 1944,  5  pages 329 

138.  Election  financial  statement,  Appleton  McCarthy  for  Senator  Club, 

filed  Aug.  24,  1946,  4  pages 334 

139.  Election  financial  statements,  Milwaukee  County  McCarthy  for  Sena- 

tor Club,  filed  Aug.  3,  Sept.  11,  Oct.  26,  and  Nov.  23,  1946,  14  pages__  338 

140.  Election  financial  statements,  McCarthv  for  Senator  Club,  filed  Aug. 

3,  Sept.  3,  Nov.  1,  and  Nov.  26,  1946, 19  page.s 352 

141.  Questionnaire  dated  Aug.  22,  1946,  of  Joseph  R.  McCarthy,  filed  with 

Special  Committee  to  Investigate  Senatorial  Campaign  Expendi- 
tures, 1946,  6  pages 371 

142.  Appleton  Bank  account  No.  18267,  for  Kiermas  and  wife 377 

143.  Appleton  Bank  collateral  pledge  dated  Sept.  6,  3946,  by  Kiermas 378 

144.  Appleton  Bank  collateral  pledge  dated  Sept.  6,  1946,  by  Kiermas 379 

145.  Appleton  Bank  collateral  pledge  dated  Oct.  10,  1946,  by  Kiermas 380 

146.  Letter  dated  May  14,  1947,  from  Schuh  to  Kiermas 381 

147.  Appleton  Bank  collateral  pledge  dated  Oct.  13,  1948,  by  Kiermas 382 

148.  Appleton  Bank  collateral  pledge  dated  Feb.  17,  1949,  by  Kiermas 383 

149.  Senator  Benton  order  of  Aug.  4,  1950,  for  102,000  copies  of  speech 384 

150.  Senator  Benton  check  of  Aug.  7,  1950,  to  Public  Printer 385 

151.  Walter  CosgrifE  check  to  Senator  Benton  for  $300  dated  Aug.  21, 1950-  386 

152.  Riggs  deposit  slip  of  Sept.  19,  1950,  for  Senator  William  Benton 387 

153.  Riggs  checking  ledger  for  Hon.  William  Benton,  13  pages 388 


Exhibit  No.  1 

S.  Res.  187.  82d  Congkess,  Ist  Session 

IN  THE  SENATE  OF  THE  UNITED  STATES 

August  6  (legislative  day,  August  1 ) ,  1951 

Mr.  Benton  submitted  the  following  resolution ;  which  was  referred  to  the 
Committee  on  Rules  and  Administration 

RESOLUTION 

Whereas  the  Subcommittee  on  Privileges  and  Elections  of  the  Committee  on 
Rules  and  Administration  has  made  a  unanimous  report  to  such  committee  with 
respect  to  the  1950  Maryland  senatorial  general  election ;  and 

Whereas  such  report  contains  findings  with  respect  to  the  financing  of  the 
campaign  of  Senator  John  Marshall  Butler  as  follows : 

"1.  As  a  result  of  the  investigation  and  hearings  of  this  subcommittee,  Jon  M. 
Jonkel,  the  campaign  manager  of  Senator  Butler,  has  been  indicted,  pled  guilty 
to,  and  has  been  sentenced  for  violation  of  the  Maryland  election  laws  for  failure 
to  properly  report  contributions  and  expenditures  in  the  Butler  campaign. 

"2.  Not  only  were  substantial  sums  of  contributions  and  expenditures  not 
properly  reported  to  Maryland  authorities  as  required  by  law,  but  also  a  proper 
accounting  was  not  made  to  the  Secretary  of  the  Senate  as  required  by  the 
Federal  Corrupt  Practices  Act."  ;  and 

Whereas  such  report,  with  respect  to  the  literature  used  in  the  campaign  of 
Senator  John  Marshall  Butler,  contains  findings  as  follows  : 

"1.  ♦     •     • 

"The  tabloid  From  the  Record  contains  misleading  half  truths,  misrepresenta- 
tions, and  false  innuendos  that  maliciously  and  without  foundation  attack  the 
loyalty  and  patriotism  not  only  of  former  Senator  Millard  Tydings,  who  won 
the  Distinguished  Service  Cross  for  battlefield  heroism  In  World  War  I,  but 
also  the  entire  membership  of  the  Senate  Armed  Services  Committee  in  1950. 

"2.  Its  preparation,  publication,  and  distribution  were  the  result  of  a  com- 
bination of  forces,  including  Senator  Butler's  own  campaign  organization. 

"3.  The  tabloid,  disregarding  simple  decency  and  common  honesty,  was  de- 
signed to  create  and  exploit  doubts  about  the  loyalty  of  former  Senator  Tydings. 

"4.  It  could  never  have  been  the  intention  of  the  framers  of  the  first  amendment 
to  the  Constitution  to  allow,  under  the  guise  of  freedom  of  the  press,  the  publica- 
tion of  any  portrayal,  whether  in  picture  form  or  otherwise,  of-  the  character 
of  the  composite  picture  as  it  appeared  in  the  tabloid  From  the  Record.  It  was 
a  shocking  abuse  of  the  spirit  and  Intent  of  the  first  amendment  to  the  Constitution. 

"5.  The  tabloid  From  the  Record  was  neither  published  nor  in  fact  paid  for 
by  the  Young  Democrats  for  Butler.  Their  alleged  sponsnr.«;lilp  for  this  publica- 
tion was  nothing  more  than  a  false  front  organization  for  the  publication  of  the 
tabloid  by  the  Butler  campaign  headquarters  and  outsiders  associated  with  it. 
In  the  judgment  of  the  subcommittee,  this  is  a  violation  of  the  Federal  and 
State  laws  requiring  i>ersons  responsible  for  such  publications  to  list  the  organ! 
zations  and  its  officers."  ;  and 

Whereas  such  subcommittee  report  contains  findings  with  respect  to  the  par- 
ticipation of  Senator  Joseph  R.  McCarthy  in  such  campaign  as  follows: 

"3.  Senator  Joseph  R.  McCarthy,  of  Wisconsin,  was  actively  interested  In  the 
campaign  to  the  extent  of  making  his  staff  available  for  work  on  research,  pic- 

(59) 


60 

tures,  composition,  printing  of  the  tabloid  From  the  Record.  Members  of  his 
staff  acted  as  couriers  of  funds  between  Washington  and  the  Butler  campaign 
headquarters  in  Baltimore.  Evidence  showed  that  some  of  the  belatedly  re- 
ported campaign  funds  were  delivered  through  his  office.  His  staff  also  was 
instrumental  in  materially  assisting  in  the  addressing,  mailing,  and  planning 
of  the  picture-post-card  phase  of  the  campaign." ;  and 

Whereas  such  subcommittee  unanimously  included  in  its  specific  conclusions 
and  recommendation  to  the  committee  the  following : 

"5.  The  question  of  unseating  a  Senator  for  acts  committed  in  a  senatorial 
election  should  not  be  limited  to  the  candidates  in  such  elections.  Any  sitting 
Senator,  regardless  of  whether  be  is  a  candidate  in  the  election  himself,  should 
be  subject  to  expulsion  by  action  of  the  Senate,  if  it  finds  such  Senator  engaged 
in  practices  and  behavior  that  make  him,  in  the  opinion  of  the  Senate,  unfit  to 
hold  the  position  of  United  States  Senator." :  Now  therefore  be  it 

Resolved,  That  the  Committee  on  Rules  and  Administration  of  the  Senate  is 
authorized  and  directed  to  proceed  with  such  consideration  of  the  report  of  its 
Subcommittee  on  Privileges  and  Elections  with  respect  to  the  19.50  Maryland 
senatorial  general  election,  which  was  made  pursuant  to  S.  Res.  250,  Eighty-first 
Congress,  April  13,  1950,  and  to  make  such  further  investigation  with  respect  to 
the  participation  of  Senator  Joseph  R.  McCarthy  in  the  1950  senatorial  campaign 
of  Senator  John  Marshall  Butler,  and  such  investigation  with  respect  to  his 
other  acts  since  his  election  to  the  Senate,  as  may  be  appropriate  to  enable  such 
committee  to  determine  whether  or  not  it  should  initiate  action  with  a  view 
toward  the  expulsion  from  the  United  States  Senate  of  the  said  Senator  Joseph 
R.  McCarthy. 

ISXHIBIT  No.  2 

United  States  Senate, 
Committee  of  Expendituees  in  the  Exectjtive  Departments, 

September  17, 1951. 
Senator  Guy  M.  Giixette, 

Chairman,  Suicommittee  on  Privileges  and  Elections, 
Senate  Office  Building,  Washington,  D.  C. 
Dear  Senator  Giixette  :  I  understand  that  your  subcommittee  is  planning  on 
starting  hearings  Thursday  of  this  week  on  the  question  of  whether  your  sub- 
committee should  recommend  that  McCarthy  be  expelled  from  the  Senate  for 
having  exposed  communists  in  government.  I  understand  further  that  the  only 
two  witnesses  who  have  asked  to  appear  to  date  are  William  Benton,  former 
Assistant  Secretary  of  State  and  a  friend  and  sponsor  of  some  of  those  whom 
I  have  named,  and  the  American  Labor  Party,  which  has  been  cited  twice  as  a 
Communist  front. 

I  understand  that,  under  Senate  precedent,  members  of  a  full  committee  have 
always  had  the  right  to  question  witnesses  who  appear  before  a  subcommittee  of 
their  own  committee.  This  I  propose  to  do  in  the  case  of  witnesses  who  appear 
to  ask  for  my  expulsion  because  of  my  exposure  of  communists  in  government. 
In  view  of  the  fact  that  your  subcommittee,  without  authorization  from  the 
Senate,  is  undertaking  to  conduct  hearings  on  this  matter,  it  would  seem  highly 
irregular  and  unusual  if  your  subcommittee  would  attempt  to  deny  me  the  right 
to  question  the  witnesses,  even  had  I  not  been  a  member  of  the  full  committee. 
If  there  is  any  question  in  your  mind  about  my  right  to  appear  and  question  the 
witnesses,  I  would  appreciate  it  greatly  if  you  would  inform  me  immediately. 

If  your  subcommittee  attempts  to  deny  me  the  usual  right  to  appear  and 

question  the  witnesses,  I  think  it  might  be  well  to  have  the  full  committee  meet 

prior  to  the  date  set  for  your  hearings  to  pass  upon  this  question.   For  that  reason, 

it  is  urgent  that  you  inform  me  immediately  what  your  position  is  in  the  matter. 

Sincerely  yours, 

Joe  McCarthy 
Joe  McCabtht. 
McC:d 


61 

Exhibit  No.  3 

SEPTEMBcat  25,  1951. 
Honorable  Joseph  R  McCarthy, 

United  States  Senate. 
My  Dear  Joe  :  I  promised  to  tell  you  the  decision  of  the  Subcommittee  on 
Privileges  and  Elections  as  to  procedure  as  soon  as  they  had  made  the  decision. 
They  are  goins  to  take  up  the  Benton  Resolution  at  9 :  30  A.  M.,  Friday,  September 
28,  in  Room  457.  At  that  time,  they  are  going  to  hear  Senator  Benton's  statement. 
They  voted  to  hear  the  Senator  in  Executive  session  but  also  voted  that  you  could 
be  present  if  you  so  desired  and  if  time  permitted,  to  make  a  statement  at  this 
same  meeting.  It  was  also  decided  that  there  should  be  no  cross-examination 
except  by  the  members  of  the  Subcommittee. 

A  further  decision  was  made  that  if  additional  evidence  is  taken,  it  will  be 
governed  by  rules  of  procedure  determined  after  this  first  meeting. 
With  personal  greetings,  I  am 
Sincerely, 

Guy  M.  Gillette. 
GMG :  dd 


Exhibit  No.  4 

October  1,  1951 
Hon.  Joseph  R.  McCarthy, 

United  States  Senator,  Washington,  D.  C. 
My  Dear  Senator:  On  last  Friday,  September  28,  Senator  Benton  appeared 
before  the  Subcommittee  on  Privileges  and  Elections  and  presented  a  statement 
in  support  of  his  resolution  looking  to  action  pertaining  to  your  expulsion  from 
the  Sen;iie.  You  had  been  lulvisfd  that  you  fi»uld  attend  this  meeting  which 
was  a  public  one,  but  without  the  right  of  cross-examination  of  Senator  Benton. 
The  Subcommittee  recessed  to  reassemble  on  call  of  the  Chairman.  The  Chair- 
man announced  at  the  close  of  the  meeting  that  an  opportunity  would  be  accorded 
Senator  McCarthy  to  appear  and  make  any  statement  he  wished  to  make  con- 
cerning the  matter  and  with  the  right  of  Senator  Benton  to  be  present,  but  with- 
out any  right  on  the  part  of  Senator  Benton  to  cross-examine  you  in  any  way. 
This  is  to  notify  you  that  this  action  was  taken  and  the  Subcommittee  will  be 
glad  to  hear  you  at  an  hour  mutually  convenient.  It  is  hoped  that  if  you  desire 
to  appear  and  make  any  statement  in  connection  with  this  matter,  that  a  time  can 
be  fixed  before  the  10th  of  October.  I  should  be  glad  to  have  your  comment 
relative  to  a  convenient  time  for  you  if  you  desire  to  come  before  us.  If  you 
do  not  so  desire  I  shall  appreciate  it  if  you  will  advise  us  of  that  fact. 
With  personal  greetings,  I  am 
Sincerely, 

Gtty  M.  Gillette 


Exhibit  No.  5 

[Copy] 

"A" 

October  4,  1951. 
The  Hon.  Guy  M.  Gillette, 

United  States  Senate,  Washington,  D.  O. 
Dear  Gitt:  This  is  to  acknowledge  receipt  of  your  letter  of  October  1  in  which 
you  offer  me  an  opportunity  to  appear  before  your  committee  and  answer  Senator 
Benton's  charges. 

Frankly,  Guy,  I  have  not  and  do  not  intend  to  even  read,  much  less  answer, 
Benton's  smear  attack.  I  am  sure  you  realize  that  the  Benton  type  of  material 
can  be  found  in  the  Daily  Worker  almost  any  day  of  the  week  and  will  continue  to 


J.  236027- 


62 

flow  from  the  mouths  and  pens  of  the  camp-followers  as  long  as  I  continue  my 
fight  against  Communists  in  government. 
With  kindest  personal  regards,  I  am 
Sincerely  yours, 

Joe  McCabtht. 
McCrct 


Exhibit  No.  6 

[Copy] 

"B" 

Decembee  6,  1951 
Senator  Guy  Gillette, 

Chairman,  Elections  Subcommittee, 

United  States  Senate,  Washington,  D.  C. 

Dear  Mr.  Chairman  :  As  you  of  course  know,  your  elections  subcommittee  has 
the  power  and  the  duty  to  carefully  investigate  any  valid  claims  of  irregularity 
or  dishonesty  in  the  conduct  of  campaigns  for  the  United  States  Senate. 

As  you  and  all  the  members  of  your  subcommittee  know  or  should  know,  the 
elections  subcommittee,  unless  given  further  power  by  the  Senate,  is  restricted 
to  matters  having  to  do  with  elections.  The  Senate  could,  of  course,  by  a  majority 
vote  give  your  subcommittee  power  to  conduct  an  unlimited  investigation  of  any 
Senator.  Such  power  was  not  asked  for  nor  given  to  your  elections  sub- 
committee. 

However,  over  the  past  months,  it  has  been  repeatedly  brought  to  my  attention 
that  a  horde  of  investigators  hired  by  your  committee  at  a  cost  of  tens  of 
thousands  of  dollars  of  taxpayer's  money,  has  been  engaged  exclusively  in  try- 
ing to  dig  up  on  McCarthy  material  covering  periods  of  time  long  before  he  was 
even  old  enough  to  be  a  candidate  for  the  Senate — material  which  can  have  no 
conceivable  connection  with  his  election  or  any  other  election.  This  is  being 
done  in  complete  disregard  of  the  limited  power  of  your  elections  subcommittee. 
The  obvious  purpose  is  to  dig  up  campaign  material  for  the  Democrat  Party 
for  the  coming  campaign  against  McCarthy. 

When  your  elections  subcommittee',  without  Senate  authorization,  spends  tens 
of  thousands  of  taxpayers'  dollars  for  the  sole  purpose  of  digging  up  campaign 
material  against  McCarthy,  then  the  committee  is  guilty  of  stealing  just  as 
clearly  as  though  the  members  engaged  in  picking  the  pockets  of  the  taxpayers 
and  turning  the  loot  over  to  the  Democrat  National  Committee. 

If  one  of  the  Administration  lackies  were  chairman  of  this  committee,  I  would 
not  waste  the  time  or  energy  to  write  and  point  out  the  committee's  complete 
dishonesty,  but  from  you.  Guy,  the  Senate  and  the  country  expect  honest  ad- 
herence to  the  rules  of  the  Senate. 

If  your  committee  wanted  to  dig  up  campaign  material  against  McCarthy  at 
the  expense  of  the  taxpayers,  you  were  in  all  honesty  bound  to  first  get  the 
power  to  do  so  from  the  Senate,  which  the  Senate  had  a  right  to  give  and  might 
have  given.  But  your  committee  did  not  risk  asking  for  such  power.  Instead, 
your  committee  decided  to  spend  tens  of  thousands  of  dollars  of  taxpayers  money 
to  aid  Benton  in  his  smear  attack  upon  McCarthy. 

Does  this  mean,  that  if  a  Benton  asks  your  committee  to  do  so,  you  will  put  an 
unlimited  number  of  investigators  at  unlimited  cost  investigating  the  back- 
ground of  the  other  95  Senators  so  their  opponents  can  use  this  material  next 
election?  Or  is  this  a  rule  which  applies  only  to  him  who  fights  Communists  in 
government?  Let's  get  an  answer  to  this,  Guy.  The  people  of  America  are 
entitled  to  your  answer. 

While  the  actions  of  Benton  and  some  of  the  committee  members  do  not  sur- 
prise me,  I  cannot  understand  your  being  willing  to  lable  Guy  Gillette  as  a  men 
who  will  head  a  committee  which,  is  stealing  from  the  pockets  of  the  American 
taxpayer  tens  of  thousands  of  dollars  and  then  using  this  money  to  protect  the 
Democrat  Party  from  the  political  effect  of  the  exposure  of  Communists  in 
government.  To  take  it  upon  yourself  to  hire  a  horde  of  investigators  and 
spend  tens  of  thousands  of  dollars  without  any  authorization  to  do  so  from  the 


63 

Senate  Is  labeliug  your  elections  subcomiiiitteo  as  even  more  dish(>r;est  fhau  was 
the  Tydings  Committee. 
Sincerely  yours, 

Joe  McCaktuy 
McC :  d 


KxHiniT  No.  7 
[Copy] 

decemuer  6,  lyni 

Senator  Joseph  R.  McCarthy, 

United  States  Senate,  Washington,  D.  C. 

My  I)ea.r  Senator  :  Your  letter  dated  December  6tb  and  referring  to  the  W(»rk 
of  the  Senate  Subcommittee  on  Triviie^es  and  Elections  in  the  discharge  of  its 
duties  relative  to  Resolution  No.  187  lias  just  been  received  by  messenger.  This 
Resolution,  on  its  introduction  by  Senator  Benton,  was  referred  by  the  Senate 
to  the  Committee  on  Rules  and  Administration,  of  which  you  are  a  member. 
This  Committee,  in  its  turn,  referred  the  Resolution  to  its  Subcommittee  on 
Privileges  and  Elections,  of  which  I  am  the  Chairman. 

Our  Subcommittee  certainly  did  not  seek  or  welcome  the  unpleasant  task  of 
studying  and  reporting  on  a  resolution  involving  charges  looking  to  the  ouster 
of  one  of  our  colleagues  from  the  Senate.  However,  our  duty  was  clear  in  the 
task  assigned  to  us  and  we  shall  discharge  that  duty  in  a  spirit  of  ulmo.st  fairness 
to  all  concerned  and  to  the  Senate.  We  have  ordered  our  staff  to  study  and 
report  to  us  on  both  the  legal  and  factual  phases  of  the  resolution.  On  receiving 
these  reports  the  Suticommittee  will  then  determine  its  course  in  the  light  of  its 
responsibilities  and  authority. 

Your  information  as  to  the  use  of  a  large  staff  and  the  expenditure  of  a  large 
sum  of  money  in  invt^stiuatioiis  relative  to  the  resolution  is.  of  com  so,  erroneous. 
May  I  also  assure  yon  tbiit  no  in<lividn;t;s  or  >: roups  futsidi  of  the  Subcommittee 
membership  have  had  or  will  have  any  influence  whatever  in  the  work  assigned 
to  us  to  do. 

With  personal  greetings,  I  am 
Sincerely, 


Guy  M.  Gillette 


GMG :  cc 


Exhibit  No.  8 
[Copy] 


December  7, 1951 


Senator  Guy  Gillette, 

Chairman,  Subcommittee  on  Elections, 

United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Gillette  :  I  would  very  much  appreciate  receiving  the  following 
information : 

(1)  The  number  of  people  employed  by  the  Elections  Subcommittee,  together 
with  information  on  their  employment  background,  the  salaries  they  receive,  and 
the  length  of  time  they  have  been  employed. 

(2)  The  names  of  tlie  above  individuals  who  have  been  working  on  the 
investigation  of  Senator  McCarthy. 

(3)  Whether  they  have  been  insti'ucted  to  restrict  their  investigation  to 
matters  concerning  elections. 

(4)  If  the  investigators  have  been  ordered  to  cover  matters  other  than  either 
my  election  or  any  other  election  in  which  I  took  a  part  than  the  theory  of  the 
law  under  which  you  feel  an  Election  Subcommittee  Is  entitled  to  hire  investi- 
gators to  go  Into  matters  other  than  those  concerned  with  elections. 

I  am  sure  that  you  will  agree  that  I  am  entitled  to  this  information. 
Sincerely  yours, 

Joe  McCarthy 


04 

Exhibit  No.  9 

[Copy] 

December  11,  1951 
Honorable  Joseph  R.  McCaethy, 

United  States  Senate,  Washington,  D.  0. 

My  Dear  Senator:  I  received  your  letter  dated  December  7th  in  which  you 
make  inquiry  and  request  for  certain  specific  information. 

As  you  are  a  member  of  the  Rules  Committee,  I  feel,  as  you  suggested,  that  you 
are  entitled  to  the  information  relative  to  the  i)ersonneI  employed  by  the  Subcom- 
mittee on  Privileges  and  Elections.  Your  lirst  request  is  as  to  the  number  of 
people  employed  by  the  Elections  Subcommittee,  their  salaries  and  the  length  of 
time  they  have  been  employed.  The  following  is  the  list  employed  by  the 
Subcommittee : 

Separated      Basic  Salary 
Employed  Position  (S)  per  annum 

Grace  E.  Johnson  Dec.  19, 1944  Clerk  (Permanent  Employee)  4,860 

Mary  K.  Yanick  Oct.  1,  1951  Stenographer  2,280 

Israel  Margolis  Aug.  25, 19r)l  Assistant  Counsel  2,335.47 

J.  M.  Fitzpatrick  Oct.  19, 1951  Assistant  Counsel       Dec.  n,  1951  1,149.86 

Dan.  G.  Buckley  Oct.  16,  1951  Assistant  Counsel       Dec.  8, 1951           928.37 

Robt.  L.  Shortley  Oct.  16, 1951  Investigator                Dec.  8, 1951  1,218.86 

This  completes  the  list  of  employees  of  the  Subcommittee.  Three  other  em- 
ployees of  the  Rules  Committee  have  been  performing  work  for  the  Subcommittee, 
including  Mr.  John  P.  Moore,  the  Chief  Counsel.  You  will  note  that  three  of  the 
six  employees  of  the  Subcommittee  were  taken  on  in  a  temporary  capacity  after 
the  middle  of  October  and  completed  their  assigned  work  within  a  few  weeks  time. 
These  men  have  done  some  work  in  connection  with  the  Ohio  Senatorial  hearing. 

You  make  further  inquiry  as  to  what  theory  of  the  law  the  Subcommittee  holds 
in  connection  with  its  investigatory  work.  We  are  not  working  under  any 
"theory".  All  the  powers  that  we  have  derived  from  delegated  responsibilities 
assigned  to  us  by  the  Senate  Committee  on  Rules  and  Administration.  We  do  not 
have,  and  could  not  have,  any  power  other  than  so  derived  as  a  subagency  of 
the  standing  committee  on  Rules  and  Administration. 
Sincerely, 

Gut  M.  Gillettb 
GMG :  re 


Exhibit  No,  10 
[Copy] 

"D" 

December  19, 1951 
Senator  Guy  Gillette, 

Chairman,  Svlwomm-ittee  on  Elections, 

United  States  Senate.  Washington,  D.  C. 
Dear  Si;n.\tor  Gillette  :  On  December  7, 1  wrote  you  as  follows : 
"I  would  very  much  appreciate  receiving  the  following  information  : 

(1)  The  number  of  people  employed  by  the  Elections  Subcommittee,  to- 
gether with  information  on  their  employment  background,  the  salaries  they 
receive,  and  the  length  of  time  they  have  been  employed. 

(2)  The  names  of  the  above  individuals  who  have  been  working  on  the 
investigation  of  Senator  McCarthy. 

(3)  Whether  they  have  been  instructed  to  re.«;trict  their  investigation 
to  matters  concerning  elections. 

(4)  If  the  investigators  have  been  ordered  to  cover  matters  otlier  than 
either  my  election  or  any  any  other  election  in  which  I  took  part,  then  the 
theory  of  the  law  under  which  you  feel  an  Elections  Subcommittee  is  en- 
titled to  hire  investigators  to  go  into  matters  other  than  those  concerned 
with  elections. 

I  am  sure  you  will  agree  that  I  am  entitled  to  this  information. 
Sincerely  yours, 

/s/    Joe  McCarthy" 
On  December  11  you  wrote  giving  me  the  names  of  tho.se  employed  by  the  Sub- 
committee, stating  that  two  others,  whom  you  did  not  name,  were  also  doing 


Go 

work  for  the  Subcommittee.  You  did  not  give  me  the  employment  backi?f(iund 
of  the  investigators  as  I  nniuested.  Why,  Senator,  do  you  refuse  to  give  me 
the  employment  backgrountl  of  those  individiialsV 

You  also  failed  to  tell  me  whether  the  investigators  have  been  instrCicted  to 
extend  their  investigation  beyond  matters  having  to  do  with  elections. 

You  state  that  the  only  power  whicli  your  subcommittee  has  was  derived  from 
the  full  Committee.  The  full  Committee  appointed  you  Cliairman  of  an  Elec- 
tions Subcommittee,  but  gave  you  no  power  whatsoever  to  hire  investigator:?  dnd 
spend  vast  amounts  of  money  to  make  investigations  having  nothing  to  do  witli 
elections.  Again  may  I  have  an  answer  to  my  questions  as  to  why  you  feel  you 
are  entitled  to  spend  the  taxpayers'  money  to  do  the  work  of  the  Democratic 
National  Committee. 

As  I  have  previously  stated,  you  and  every  member  of  your  Subcommittee  who 
is  responsible  for  spending  vast  amounts  of  money  to  hire  investigators,  pay 
their  traveling  expenses,  etc.,  on  matters  not  concerned  with  elections,  is  just 
as  dishonest  as  though  he  or  she  picked  the  pockets  of  the  taxpayers  and  turned 
the  loot  over  to  the  Democrat  National  Committee. 

I  wonder  if  I  might  have  a  frank,  honest  answer  to  all  the  questions  covered 
In  my  letter  of  December  7.  Certainly  as  a  member  of  the  Rules  Committee  and 
as  a  member  of  the  Senate,  I  am  entitled  to  this  information.  Your  failure  to 
give  this  information  highlights  the  fact  that  your  Subcommittee  if  not  con- 
cerned with  investigating  elections,  but  concerned  with  dishonestly  si^ending  the 
taxpayers'  money  and  using  your  Subcommittee  as  an  arm  of  the  Democrat 
National  Committee. 

Sincerely  yours, 


McC  :dr 


Exhibit  No.  11 
[Copy] 


/s/    Joe  McCaethy 


December  21, 1951 


Senator  Joseph  R.  McCauthy, 

United  States  Senate,  Washington,  D.  C. 

My  Dear  Senator:  Today  I  received  your  letter  of  December  19th  quoting 
former  correspondence  in  which  you  had  asked  for  some  specitic  information 
which  you  feel  was  not  given  you  in  my  reply  to  your  former  request. 

Not  only  as  a  member  of  the  Rules  Conmiittee,  but  as  a  member  of  the  United 
States  Senate,  you  were  certainly  entitled  to  any  factual  information  relative  to 
the  work  of  our  Subcommittee  of  Rules  and  Administration  or  with  reference 
to  the  members  of  its  staff.  I  shall  be  very  glad  to  give  you  such  information  as 
I  have  or  go  with  you,  if  you  so  desire,  to  the  rooms  occupied  by  the  Subcommittee 
and  aid  you  in  securing  any  facts  that  are  there  available,  relative  to  the  em- 
ployees of  the  Subcommittee  or  their  work. 

I  am  sure  you  will  agree  that  this  is  preferable  to  an  attempt  to  cover  matters 
of  this  kind  through  an  interchange  of  correspondence.  Unfortunately,  our  pre- 
vious correspondence  concerning  these  matters  found  its  way  into  the  public 
press  and  your  letters  to  me  were  printed  in  full  in  the  public  press  even  before 
I  received  them.  As  a  former  judge  you  will  appreciate,  I  am  sure,  the  impropriety 
of  discussing  matters  pertaining  to  pending  litigation  in  the  public  press.  The 
Senate  Committee  on  Rules  and  Administration,  having  referred  the  Benton 
Resolution  to  our  Subcommittee,  has  placed  us  in  a  quasi-judicial  position  relative 
to  a  matter  of  outstanding  imp<irtance  involving  the  expulsion  from  the  Senate 
of  a  sitting  member. 

Inquiry  has  disclosed  that  it  would  be  impossible  for  me  to  call  the  Subcommittee 
together  for  further  consideration  of  this  resolution  and  its  Import  before  Monday, 
the  7th  of  January,  and  I  am  calling  a  meeting  for  that  date  at  10  A.  M.  in  my 
o£9ce. 

When  the  Benton  Resolution  was  first  referred  to  the  Subcommittee  it  developed 
that  there  was  a  difference  of  opinion  among  the  members  ;is  to  our  responsibility 
under  the  reference  and  tlie  terms  of  the  resolution.  The  Subcommittee  ordered 
its  stafC  to  make  study  and  report  of  the  legal  phases  and  precedents  pertaining 
to  the  questions  raised  by  the  resolution  and  also  to  report  as  to  certain  allegations 
of  fact  contained  in  the  resolution.  We  are  awaiting  these  reports  and,  on  the 
date  of  the  meeting,  which  I  have  called  for  January  7th,  it  is  expected  that  the 
Subcommittee  will  make  a  decision  as  to  what  further  action,  if  any,  it  will  take 
on  the  resolution. 


66 

As  I  have  told  you  before,  if  you  care  to  appear  before  the  Subcommittee,  we 
should  be  jrhid  to  make  the  necessary  arrangements  as  to  time  and  place.  Your 
letter  and  this  roply  will  be  made  available  to  the  members  of  the  Subcommittee 
by  copy  and  you  will  be  promptly  advised  as  to  what  action  the  Subcommittee 
dcx'ided  to  take. 

In  the  meantime,  as  I  have  stated  above  in  this  letter,  I  shall  be  glad  to  confer 
with  you  personally  as  to  matters  concerning  our  staff  and  its  work. 

In  closing,  may  I  again  assure  you  that  as  far  as  I  am  personally  concerned, 
neither  the  Democratic  National  Committee,  nor  any  other  person  or  group  other 
than  an  agency  of  the  United  States  Senate  has  had  or  will  have  any  influence 
whatever  as  to  my  duties  and  actions  as  a  member  of  the  Subcommittee  and  I  am 
just  as  confident  that  no  other  member  of  the  Subcommittee  has  been  or  will  be 
so  Influenced. 

AVfth  warm  personal  greetings  and  holiday  wishes,  I  am 
Sincerely. 

GV\  U.  GlM.ETTE 

GMG  :cc 


EXHIUIT  No.   12 

[Copy] 

"E" 

January  4,  1952 
Senator  GxTT  M.  Gillette, 

Chairman,  Subcommittee  on  Elections  and  Privilcgca, 
United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Gillette  :  Your  letter  of  December  '21  has  just  been  called  to 
my  attention.     As  you  know,  this  was  in  answer  to  my  letter  to  you  of  Decem- 
ber 19,  in  which  I  asked  for  certain  information. 

I  can  easily  understand  that  you  might  have  some  diflaculty  answering  some  of 
my  questions  without  first  consulting  the  other  members  of  the  subcommittee — 
for  example,  the  question  as  to  the  theory  of  the  law  under  which  investigators 
are  being  hired  and  money  being  spent  to  investigate  matters  having  nothing 
whatsoever  to  do  with  elections.  There  is,  however,  one  simple  question  which 
you  could  easily  answer  and  I  am  sure  you  will  agree  that  I  am  entitled  to  the 
answer.  It  is  the  simple  question  of  whether  or  not  you  have  ordced  the  in- 
vestigators to  restrict  their  investigation  to  matters  havinu  to  do  with  elections, 
or  whether  their  investigations  extend  into  fields  having  nothing  whatsoever  to 
do  with  either  my  election  or  the  eloctiori  of  any  other  Senator. 
Sincerely  yours, 

/s/     .Toe  McCarthy 


.Toe  McCarthy 


]McC  :jh 


Exhibit  No.  12A 

[Copy] 

January  10, 1952 
Senator  Joe  McCarthy, 

United  States  Senate,  Washington,  D.  C. 

My  Dear  Senator  :  This  is  an  acknowledgment  of  the  receipt  of  your  letter  of 
January  4th  which  has  just  been  brought  to  my  attention.  Your  letter  makes 
inquiry  as  to  whether  the  Subcommittee  on  Privileges  and  Elections  "ordered 
the  Investigators  to  restrict  their  investigations  to  matters  having  to  do  with 
elections,  or  whether  their  investigations  extend  into  fields  having  nothing 
whatever  to  do  with  either  my  election  or  the  election  of  any  other  Senator." 

In  reply,  you  xt-ill  recall  that  the  Senate  Committee  on  Rules  and  Administra- 
tion received  from  the  Senate  the  Benton  Resolution  calling  for  a  preliminary 
Investigation  relative  to  ouster  proceedings.  The  Rules  Committee  referred  the 
Resolution  to  our  Subcommittee,  as  any  other  piece  of  legislation  would  be 
referred  to  a  Subcommittee.  The  Subcommittee  met  and  directed  its  staff  to 
make  a  preliminary  study  both  of  the  legal  phases  and  precedents  pertaining  to 
this  type  of  action  and  also  a  preliminary  investigation  of  the  factual  matter 
charged  in  the  resolution.     They  were  instructed  to  make  these  preliminary 


G7 

studies  and  report  to  us  at  as  early  a  time  as  ix)ssible.  The  report  on  the  legal 
questions  has  been  received  by  the  Subcommittee  and  we  advise  that  the  report 
on  the  factual  charges  will  be  available  to  us  by  the  end  of  this  week.  The 
Subcommittee  then  would  study  the  reports  and  determine  what  action,  if  any, 
they  wish  to  take  in  making  their  report  to  the  Rules  Committee  ou  the  resolution. 
The  above  satement  covers  the  (luestion  you  asked  as  to  what  instructions  were 
given  to  the  Subcommittee  staff  relative  to  the  Benton  Resolution. 

Sincerely, 

Gxnr  M.  Gillette 
GMG  :cc 


ExHiitiT  No.  13 

[Copy] 

March  21,  1932 
The  Hon.  Carl  Hayuen, 

United  States  Seriate,  Washiniiton,  D.  C. 

Dkar  Se.nator  Haydkx  :  Some  days  ago  you  handed  me  a  letter  from  Senator 
Gillette,  chairman  of  the  Senate  Elections  Subcommittee,  to  you  as  chairman 
Of  the  full  committee.  At  that  time  you  informed  me  that  a  majority  of  the 
full  committee  had  adopted  the  Subcommittee's  resolution  requesting  that  I 
bring  to  the  floor  of  the  Senate  a  motion  to  discharge  the  Elections  Subcom- 
mittee. You  further  stated  that  the  purpose  of  this  motion  would  be  to  test 
the  jurisdiction  and  integrity  of  the  memt)ers  of  the  Subcommittee. 

As  I  stated  to  you  the  other  day,  I  feel  it  would  be  entirely  improper  to  dis- 
charge the  Elections  Subcommittee  at  this  time  for  the  following  reasons : 

The  Elections  Subcommittee  unquestionably  has  the  power  and,  when  com- 
plaint is  made,  the  duty  to  investigate  any  improper  conduct  on  the  part  of 
-McCarthy  or  any  other  Senator  in  a  Senatorial  election. 

The  Subcommittee  has  spent  tens  of  thousands  of  dollars  and  nearly  a  year 
making  the  most  painstaking  investigation  of  my  part  in  the  Maryland  election, 
as  well  as  my  campaigns  in  Wisconsin.  The  Subcommittee's  task  is  not  finished 
until  it  reports  to  the  Senate  the  result  of  that  investigation,  namely  whether 
they  found  such  misconduct  ou  the  part  of  McCarthy  in  either  his  own  cam- 
paigns or  in  the  Tydings  campaign  to  warrant  his  expulsion  from  the  Senate. 

I  note  the  Subcommittee's  request  that  the  integrity  of  the  Subcommittee  be 
passed  upon.  As  you  know,  the  sole  question  of  the  integrity  of  the  Subcommittee 
conc<M-ned  its  right  to  spend  vast  sums  of  money  investigating  the  life  of 
McCarthy  from  birth  to  date  without  any  authority  to  do  so  from  the  Senate. 
However,  the  vote  on  that  question  cannot  affect  the  McCarthy  investigation. 
In  that  the  Committee  for  a  year  has  been  looking  into  every  possible  phase  of 
McCarthy's  life,  including  an  investigation  of  those  who  contributed  to  my 
unsuccessful  1944  campaign. 

As  you  know,  I  wrote  Senator  Gillette,  chairman  of  the  Subcommittee,  that 
I  considered  this  a  completely  dishonest  handling  of  taxpayers'  money.  I  felt 
that  the  Elections  Subcommittee  had  no  authority  to  go  into  matters  other  than 
elections  unless  the  Senate  instructed  it  to  do  so.  However,  it  is  obvious  that 
in  so  far  as  McCarthy  is  concerned  this  is  now  a  moot  question,  because  the 
staff  has  already  painstakingly  and  diligently  investigated  every  nook  and 
cranny  of  my  life  from  birth  to  date.  Every  possible  lead  on  McCarthy  was 
Investigated.  Nothing  that  could  be  investigated  was  left  uninvestigated.  The 
staffs  scurrilous  report,  which  consisted  of  cleverly  twisted  and  distorted  facts, 
was  then  "leaked"  to  the  left-wing  elements  of  the  press  and  blazoned  across  the 
nation  in  an  attempt  to  further  smear  McCarthy. 

A  vote  of  confidence  in  the  Subcommittee  would  be  a  vote  on  whether  or  not 
it  had  the  right,  without  authority  from  the  Senate,  but  merely  on  the  request 
of  one  Senator  (in  the  case  Senator  Benton)  to  make  a  thorough  and  complete 
investigation  of  the  entire  life  of  another  Senator.  A  vote  to  uphold  the  Sub- 
committee would  mean  that  the  Senate  accepts  and  approves  this  precedent 
and  makes  it  binding  on  the  Elections  Subcommittee  In  the  future. 

A  vote  against  the  Subcommittee  could  not  undo  what  the  subcommittee  has 
done  in  regard  to  McCarthy.  It  would  not  force  the  subcommittee  members 
to  repay  into  the  Treasury  the  funds  spent  on  this  investigation  of  McCarthy. 
A  vote  against  the  Subcommittee  would  merely  mean  that  the  Senate  disap- 
proves what  has  already  been  done  in  so  far  as  McCarthy  is  concerned,  and 
therefore,  disapproves  an  investigation   of  other  Senators  like  the  one  which 


68 

was  made  of  McCarthy.  While  I  felt  the  Subcommittee  exceeded  its  authority, 
now  that  it  has  established  a  precedent  in  McCarthy's  case,  the  same  rule 
should  apply  to  every  other  Senator.  If  the  Subcommittee  brousht  up  this 
question  before  the  investisiatioii  had  been  made,  I  would  have  voted  to  dis- 
charge it.  Now  that  the  deed  is  done,  however,  the  same  rule  should  apply  to 
the  other  95  Senators. 

For  that  reason,  I  would  be  forced  to  vigorously  oppose  a  motion  to  discharge 
the  Elections  Subcommittee  at  this  time. 

I  hope  the  Senate  agrees  with  me  that  it  would  be  highly  improi)er  to  discharge 
the  Gillette-Monroney  Subcommittee  at  this  time,  thereby,  in  effect,  setting  a 
different  rule  for  the  Subcommittee  to  follow  in  case  an  investigation  is  asked 
of  any  of  the  other  95  Senators. 
Sincerely  yours, 

Joe  McCarthy 
MeC:  ct 
cc :  To  all  Senators 


EXHIRIT  No.  14 

S.  Res.  300,  82u  Cx:)Ngkess,  2d  Session 

IN  THE  SENATE  OF  THE  UNITED  STATES 

Apkh,  8  (legislative  day,  April  2) ,  1952 

Mr.  Hayden  (for  himself,  Mr.  Hayden,  Mr.  Gillette,  Mr.  Monroney,  Mr.  Hen- 
NiNGS,  and  Ml".  Hendrickson)  submitted  the  following  resolution;  which  was 
ordered  to  lie  over  under  the  rule 

RESOLUTION 

Whereas  S.  Res.  187,  to  further  investigate  the  participation  of  Senator  Joseph 
R.  McCarthy  in  the  Maryland  1950  Senatorial  campaign  and  other  acts,  to  deter- 
mine whether  expulsion  proceedings  should  be  instituted  against  him,  was  intro- 
duced in  the  Senate  by  the  Senator  from  Connecticut  (Mr.  Benton)  on  August 
6,  1951,  and  was  referred  by  the  Senate  to  the  Committee  on  Rules  and 
Administration ;  and 

Whereas,  on  August  8,  1951,  said  resolution  was  referred  by  the  Committee  on 
Rules  and  Administration  to  its  Subcommittee  on  Privileges  and  Elections ;  and 

Whereas,  in  a  series  of  communications  addressed  to  the  chairman  of  said 
subcommittee  during  the  period  between  December  6,  1951,  and  January  4,  1952, 
the  Senator  from  Wisconsin  (Mr.  McCarthy)  charged  that  the  subcommittee 
lacked  jurisdiction  to  investigate  such  acts  of  the  Senator  from  Wisconsin  (Mr. 
McCarthy)  as  were  not  connected  with  election  campaigns  and  attacked  the 
honesty  of  the  members  of  the  subcommittee,  charging  that,  in  their  investiga- 
tion of  such  other  acts,  the  members  were  improperly  motivated  and  were  "guilty 
of  stealing  just  as  clearly  as  though  the  members  engaged  in  picking  the  pockets 
of  the  taxpayers'' ;  and 

Whereas,  on  March  5,  1952,  the  Subcommittee  on  Privileges  and  Elections 
adopted  the  following  motion  as  the  most  expeditious  parliamentary  method  of 
obtaining  an  atfirmation  by  the  Senate  of  its  jurisdiction  in  this  matter  and  a 
vote  on  the  honesty  of  its  members  : 

"That  the  chairman  of  the  Committee  on  Rules  and  Administration  request 
Senator  McCarthy  of  Wisconsin  to  raise  the  question  of  the  jurisdiction  of  the 
Subcommittee  on  Privileges  and  Elections  and  of  the  integrity  of  the  members 
thereof  in  connection  with  its  consideration  of  S.  Res.  187  by  making  a  formal 
motion  on  the  floor  of  the  Senate  to  dischaige  the  committee;  and  that  Senator 
McCarthy  be  advised  by  the  chairman  of  the  Committee  on  Rules  and  Adminis- 
tration that,  if  he  does  not  take  the  requested  action  in  a  period  of  time  to  be 
fixed  by  stipulation  between  Senator  McCarthy  and  the  chairman  of  the  Com- 
mittee on  Rules  and  Administration,  the  committee  (acting  through  the  chair- 
man of  the  standing  committee  or  the  chairman  of  the  subcommittee)  will  itself 
present  such  motion  to  discharge  for  the  purpose  of  allirming  the  jurisdiction 
of  the  subcommittee  and  the  integrity  of  its  members  in  its  consideration  of  the 
aforesaid  resolution ;"  and 

Whereas,  on  March  6,  1952,  the  said  motion  was  also  adopted  by  the  Com- 
mittee on  Rules  and  Administration  and  the  chairman  of  said  committee  sub- 


69 

niitted  to  the  Seuator  from  Wisconsin  (Mr.  McCarthy)  a  copy  of  the  above-stated 
motion ;  and 

Wht'reas,  by  letter  dated  March  21,  lOM,  the  Senator  from  Wisconsin  (Mr. 
McCartliy)  in  effect  declined  to  take  the  action  called  for  by  the  above-stated 
motion,  repwitiiig  his  charge  that  the  subcommittee  has  been  guilty  of  "a  com- 
pletely dislionest  handling  of  taxpayers'  money",  referring  to  a  preliminary  and 
confidential  report  of  its  staff  as  "scurrilous"  and  consisting  of  "cleverly 
twisted  and  distorted  facts": 

Now,  therefore,  to  determine  the  proper  jurisdiction  of  the  Committee  on 
Rules  ami  Aduiinistratioii  and  to  express  the  confidence  of  the  Senate  in  its 
coniiiiittee  in  their  consideration  of  S.  Kes.  187,  it  being  understood  that  the 
following  motion  is  made  solely  for  this  test  and  that  the  adoption  of  the  reso- 
lution is  opposed  by  the  members  on  wliose  behalf  it  is  submitted,  be  it 

Resolved,  That  the  Committee  on  Rules  and  Administration  be,  and  it  hereby 
is,  dischai"ged  from  the  further  consideration  of  S.  Res.  187. 


Exhibit  No.  15 

Mr.  Hayden.  Mr.  President,  I  ask  unanimous  consent  that  there  be  printed  In 
the  Record  at  this  point  certain  precedents  of  the  Senate  relating  to  expulsion, 
exclusion,  and  censure  cases  unconnected  with  elections,  from  1871  to  19,51. 

(There  being  no  objection,  the  precedents  were  ordered  to  be  printed  in 
the  Record,  as  follows : ) 

Senate  IJxput-sion,  Exclusion,  and  Censure  Cases  Unconnected  With  Elec- 
tions (1871-1951) 

pltopositions  of  1  aw  relating  to  the  .tt'kisdiction  and  procedire  of  the  subcom- 
mittee on  privileges  and  fxection8 

/.  The  jurisdiction  of  the  Subcommittee  on  Privileges  is  not  limited  to  election 
matters,  but  extends  to  expulsion,  exclusion,  and  censure  cases  totally  uneon- 
nectcd  with  the  conduct  of  a  Senator  in  an  election 

The  present  source  of  jurisdiction  of  the  standing  committees  of  the  Senate 
is  rule  XXV  of  the  Standing  Rules  of  the  Senate  (sec.  102  of  the  Legislative 
Reorganization  Act  of  104G).  Under  section  1  (o)  (1)  (D)  of  this  rule,  the 
Congress  has  granted  jurisdiction  to  the  Committee  on  Rules  and  Administration 
in  the  following  matters :  Election  of  the  President,  Vice  President,  or  Members 
of  Congress;  corrupt  practices;  contested  elections;  credentials  and  qualifica- 
tions; Federal  elections  generally;  Presidential  succession. 

The  category  "credentials  and  qualifications"  authorizes  the  Committee  on 
Rules  and  Administration  and  its  subagent,  the  Subcommittee  on  Privileges  and 
PJlectioiis,  to  investigate  alleged  misconduct  of  a  Senator  with  a  view  toward 
exclusion,  expulsion,  or  punisliment.  This  conclusion  is  based  upon  the  history  of 
the  Legislative  Reorganization  Act  of  1946,  the  precedents  of  the  old  standing 
Committee  on  Privileges  and  Elections,  and  the  general  policy  of  the  Reorgani- 
>:ation  Act  against  special  committees. 

(a)  The  history  of  the  Legislative  Reorganization  Act  of  1946  indicates  that  the 
precedents  of  the  old  standing  Committee  on  Privileges  and  Elections  are  relevant 
in  defining  the  jurisdiction  of  the  present  subcommittee. 

The  history  of  the  act  in  relation  to  the  Rules  Committee  indicates  that  its  only 
purpose  was  to  consolidate  six  committees.  Audit  and  Control  of  the  Contingent 
Expenses  of  the  Senate,  Library,  Privileges  and  Elections,  Rules,  Printing,  and 
Enrolled  Bills  into  the  single  Committee  on  Rules  and  Administration  (S.  Rept. 
No.  14(K),  79th  Cong.,  2d  sess.,  table  IL  PP-  12-17).  See  also  Senate  hearings, 
volume  7t;2,  page  244,  incorporating  the  remarks  of  Senator  La  Follette  upon  bis 
resolution  providing  for  reorganization  of  Senate  committees.  There  is  no  indi- 
cation tliat,  in  the  process  of  consolidation,  the  functions  of  the  old  committee 
were  added  to,  whittled  away,  or  transfi-rred  to  other  new  committees.  Hence, 
the  precedents  establislied  by  the  old  standing  Committee  on  Privileges  and 
Elections  between  1871  and  1947  are  relevant  in  defining  the  jurisdiction  of  the 
present  Rules  Committee  and  its  Subcommittee  on  Privileges  and  Elections. 

(b)  Those  precedents  establish  that  the  old  Committee  on  Privileges  and  Elec- 
tions possessed  jurisdiction  in  expulsion,  exclusion,  and  censure  cases  totally 
unconnected  with  the  conduct  of  a  Senator  in  an  election. 


70 

Since  1871,  when  the  standing  Committee  on  Privileges  «n»l  Elections  was  first 
organized,  tljere  have  been  eight  cases  of  expulsion  or  exclusion  proceedings 
based  on  grounds  totally  unconnected  w^ith  the  election  of  a  Senator.  There  have 
also  been  three  cases  of  censure  unrelated  to  election  conduct.  These  11  cases 
are  digested  in  the  appendix,  with  emphasis  on  the  procedure  employed  in  each 
case.    Similar  data  are  also  presented  in  tabular  form. 

These  cases  indicate  that  the  Committee  on  Privileges  and  Elections,  and  no 
other  standing  committee,  was  presumed  to  have  jurisdiction  in  expulsion  and 
exclusion  cases,  even  though  the  matters  involved  were  unconnected  with  con- 
duct of  an  election.  The  Patterson  case  in  1873  was  the  only  case  among  the 
11  which  was  considered  by  some  other  committee.  This  Avas  a  select  rather 
than  a  standing  committee.  However,  even  in  the  Patterson  case,  debate  on  the 
floor  makes  it  apparent  that  the  Committee  on  Privileges  and  Elections,  although 
considered  the  proper  committee,  preferred  to  relinquish  jurisdiction  to  a  select 
committee  because  it  was  then  preoccupied  with  other  matters. 

In  addition  to  the  Patterson  case,  four  of  the  cases  were  expulsion  cases : 
William  N.  Roach  of  North  Dakota  (1893)  ;  John  H.  Mitchell  of  Oregon  (1C05)  ; 
Joseph  R.  Burton  of  Kansas  (1906)  ;  and  Robert  M.  La  Follette  (1917-19). 

In  the  Roach  case,  the  Senate  debated  but  did  not  vote  upon  resolutions  direct- 
ing the  Committee  on  Privileges  and  Elections  to  investigate  charges  of  pre- 
election embezzlement. 

Mitchell,  indicted  for  selling  his  influence,  answered  the  charges  against  him  on 
the  Senate  floor,  withdrew  from  the  Senate,  and  died  before  the  Senate  took  any 
action. 

In  the  Burton  case,  the  Senate  by  unanimous  consent  passed  a  resolution  direct- 
ing the  Committee  on  Privileges  and  Elections  to  examine  into  the  legal  effect 
of  a  final  judgment  of  conviction  of  a  Senator  who  had  received  compensation 
for  services  rendered  before  a  Government  department;  Burton,  however,  re- 
signed before  the  committee  took  any  action. 

The  La  Follette  case  was  instituted  by  the  presentation  to  the  Senate  of  the 
petition  of  the  Minnesota  Commission  of  Public  Safety  calling  for  the  expulsion 
of  La  Follette  for  an  allegedly  disloyal  speech.  The  petition  was  referred  to  the 
Committee  on  Privileges  and  Elections,  which  held  hearings  and  finally  exon- 
erated La  Follette. 

The  appendix  describes  three  exclusion  proceedings  where  the  alleged  grounds 
were  unconnected  with  misconduct  in  an  election:  Reed  Smoot  of  Utah  (1903- 
1907)  ;  Arthur  R  Gould  of  Maine  (1926)  ;  and  William  Langer  of  North  Dakota 
(1941). 

The  Smoot  and  Langer  cases  might  be  categorized  as  expulsion  cases,  inasmuch 
as  the  Senate  superimposed  the  requirement  that  exclusion  be  by  two-thirds. 
The  Committee  on  Privileges  and  Elections,  after  considering  each  case,  exon- 
erated Gould,  but  recommended  the  exclusion  of  Smoot  and  Langek.  The  Senate, 
however,  voted  that  Smoot  and  Lan(;kr  were  entitled  to  theii-  seats. 

It  is  significant  that  while  the  jurisdiction  of  the  Senate  to  inquire  into  a 
Senator's  conduct  before  his  election  was  challenged  in  these  cases,  reference  of 
the  matters  to  the  Committee  on  Privileges  and  Elections  was  not  questioned. 

Finally,  there  were  three  censure  cases  since  the  founding  of  the  old  Committee 
on  Privileges  and  Elections :  Senators  Tillman  and  McLauriu  of  South  Carolina 
(1902)  and  Hiram  Bingham  of  Connecticut  (1929). 

Tillman  provoked  McLaurin  into  the  use  of  unparliamentary  language;  where- 
upon Tillman  left  his  seat  and  assaulted  McLaurin.  It  was  the  Committee  on 
Privileges  and  Elections  to  which  the  matter  was  referred.  The  committee  re- 
ported a  resolution  of  censure,  which  the  Senate  adopted. 

In  the  Bingham  case,  a  Judiciary  subcommittee  investigating  lobbies  reported 
that  Senator  Bingham  had  appointed  an  official  of  a  manufacturers'  association 
to  his  staff  and  had  taken  him  into  a  confidential  committee  meeting  considering 
a  tariff  bill.  The  subcommittee,  however,  did  not  suggest  action  against  Bing- 
ham. The  question  of  punishment  was  raised  on  the  floor  by  Senator  Norris, 
who  offered  a  resolution  of  censure.  This  resolution  was  debated,  amended,  and 
approved  by  the  Senate. 

(c)  The  language  and  policy  of  the  Reorganization  Act  opiwsed  jurisdiction 
in  any  otiier  standing  committee  or  in  a  select  committee. 

Rule  XXV  contains  no  language  which  would  support  jurisdiction  in  expul- 
sion matters  in  any  standing  committee  other  than  the  Rules  Committee.  Further- 
more, the  history  of  the  Reorganization  Act  indicates  that  the  draftsmen  were 
motivated  by  a  policy  against  select  committees  (S.  Rept.  No.  1011,  79th  Cong., 
2d  sess.,  p.  6),  and  the  Senate  bill  (S.  2177,  sec.  120)  contained  a  prohibition  of 


71 

special  or  select  coiiuiiiUoos.  Altlioiii;h  the  llonsc  cliniinat.'d  tho  Hat  l>ui>  oa 
select  committees  in  the  titial  version  oi  the  Ueoifiani/.ation  Act,  it  was  ainiareiitly 
the  liope  of  the  draftsmen  of  riUe  XXV  that  its  hniKHi'i-'e  would  cover  the  wliole 
field  of  senatorial  action,  with  the  result  that  any  bill,  resolution,  or  hn'uiorial 
could  be  referred  to  the  appropriate  slaiidiii^i  committee.  Thus,  the  history 
and  lanjiuage  of  the  le^^islalive  Iteorganizalion  Act  allirniativfly  support  the 
jurisdiction  of  the  Rules  ("i>mmittee  in  expulsion  cases  and  oppose  the  jurisdic- 
tion of  any  other  standing  conmiittee  or  of  a  select  committee. 

II.  The  Subcommittee  on  Prii-ilrgcs  nud  Elections  posscsscn  lajal  authority  to 
7nake  investigation  of  charges  of  alleged  misconduct  by  a  Senator,  to  hold 
public  hearings,  and  to  report  to  the  Rules  Committee  a  resolution  of  expulsion, 
censure,  or  exoneration 

(a)  Section  134  (a)  of  the  Legislative  Keorganization  Act  provides:  "Each 
standing  committee  of  the  Senate,  including  any  subcommittee  of  any  such 
committee,  is  authorized  to  hold  such  hearings,  to  sit  and  act  at  such  times  and 
places  during  the  sessions,  recesses,  and  adjourned  periods  of  the  Senate,  to 
require  by  subpeua  or  otherwise  the  attendance  of  such  witnesses  and  the  pro- 
duction of  such  correspondence,  boolcs,  papers,  and  documents,  to  take  such 
testimony  and  to  make  such  expenditures  (not  in  excess  of  $10,000  for  each 
committee  during  any  Congress)  as  it  deems  advisable.  Each  such  committee 
may  make  investigations  into  any  matter  within  its  jurisdiction,  may  report  such 
hearings  as  may  be  had  by  it,  and  may  eniploy  stenographic  assistance  at  a  cost 
not  exceeding  25  cents  per  hundred  words.  The  expenses  of  the  committee  shall 
be  paid  from  the  contingent  fund  of  the  Senate  upon  vouchers  approved  by  the 
chairman." 

Thus,  if  it  is  conceded  that  the  Sultcommittee  on  Privileges  and  Elections 
possesses  jurisdiction  in  expulsion  cases,  it  follows  from  section  134  (a)  that  the 
subcommittee  has  the  power  to  make  investigations  and  hold  hearings  in  an 
expulsion  case  without  obtaining  specific  autliorization  from  the  Senate  or  from 
the  Rules  Committee. 

(b)  The  precedents  of  the  old  standing  committee  indicate  that  investigations 
have  been  commenced  both  with  and  without  specific  Senate  authorization  or 
direction. 

The  old  Committee  on  I'rivileges  and  Elections  was  presented  with  five  cases 
of  expulsion  or  exclusion  unconnected  with  an  election.  In  three  of  these 
cases,  tho3e  of  Smoot,  Burton,  and  Gould,  the  Senate  adopted  resolutions  direct- 
ing an  investigation  of  the  charges  against  the  respective  Senators.  In  the  other 
two  cases,  those  of  La  FoUette  and  Laxgek,  the  petitions  ami  protests  of  private 
citizens  were  referred  by  the  presiding  ofticer  to  the  Committee  on  Privileges  and 
Elections,  which  then  conducted  investigations  without  obtaining  resolutions  of 
authorization  from  the  Senate. 

These  precedents  indicate  that  the  legal  power  of  the  subcommittee  to  conduct 
investigations  of  its  own  motion  is  not  subject  to  question ;  and,  also,  that  the 
subcommittee  may  act  under  a  resolution  formally  adopted  by  the  Senate. 


72 


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73 

Appendix  op  ExPtrLSioN,  Exclusion,  and  Censure  Cases  Since  the  Organea- 

TION  OF  THE  COMMITTfJ-l  ON   PRIVILEGES  AND  ELECTIONS 

1.    JAMES  W.  PATTERSON,  OF  NEW   HAMPSHIRE,  FROM   MARCH   4,   1867,  UNTIL  MARCH   3, 

1873 

On  February  4,  1S73,  the  House  of  Representatives  transmitted  to  the  Senate 
a  copy  of  evidence  reported  by  a  select  investigating  committee  which  investigated 
certain  Members  of  the  Senate  in  the  credit  mobilizer  bribery  scandal. 

It  was  then  moved  and  resolved  by  unanimous  consent  to  appoint  a  select 
investigating  committee  for  referral  of  the  House  message,  the  committee  to 
possess  the  subpena  power. 

On  February  27,  1S73,  the  select  committee  submitted  a  report  (No.  519)  ac- 
companied by  the  following  resolution:  "Resolved,  That  James  W.  Patterson  be, 
and  he  is  hereby  expelled  from  his  seat  as  a  member  of  the  Senate." 

On  March  1  and  3, 1S73,  the  Senate  debated  the  question  of  taking  up  the  report 
of  the  committee  for  consideration,  but  adjourned  without  actually  considering 
the  resolution. 

Mr.  Patterson's  term  then  ended,  and  he  did  not  return  to  the  Senate. 

At  a  special  session  in  March  of  1873  the  Senate  agreed  to  a  resolution  which 
pointed  out  that  it  was  impossible  to  consider  the  expulsion  I'esolution  at  the 
previous  session  and  that  it  was  questionable  whether  it  was  competent  for  the 
Senate  to  consider  the  same  aftor  Mr.  Patterson  had  ceased  to  be  a  Member. 
It  therefore  merely  resolved  to  print  Mr.  Patterson's  pamphlet.  Observations  on 
the  Report  of  the  Committee  of  the  Senate  of  the  United  States  Respecting  the 
Credit  Mobilizer  of  America. 

(Citations:  Senate  Election  Cases,  vol.  I,  pp.  120&-1211 ;  Senate  Journal,  42d 
Cong.,  3d  sess. ;  S.  Pept.  519,  42d  Cong.,  3d  sess. ;  debate  on  appointment  of 
investigating  committee.  Congressional  Globe,  pt.  2,  42d  Cong.,  3d  sess.,  p.  1099; 
debate  on  talcing  up  report  of  committee  for  consideration,  Congressional  Globe, 
pt.  3,  4-:a  Vouj:.,  3(1  sess.,  pp.  200N,  ijOilli,  21S4,  2185;  debate  in  special  session  on 
resolution  to  print  report  and  Patterson's  pamphlet,  Congressional  Record,  vol. 
1,  pp.  193-19.7,204.) 

2.  WILLIAM   N.  EOACH,  OF  NORTH   UAKO'IA,   SPECIAL  SESSION   OF  THE  SENATE, 

MARCH    4,    1893 

On  March  28,  1893,  Senator  Hoar  introduced  a  resolution  that  "the  Committee 
on  Privileges  and  Elections  be  directed  to  investigate  the  allegations  recently 
extensively  made  in  the  public  press,  charging  William  N.  Roach,  a  Senator 
from  the  State  of  North  Dakota,  with  the  offense  of  criminal  embezzlement,  to 
report  the  facts  of  the  transactions  referred  to,  and  further  to  report  what  is  the 
duty  of  the  Senate  in  regard  thereto." 

This  resolution  was  followed  on  April  10,  1893,  by  a  substitute  by  Mr.  Hoar, 
which  added  the  fact  that  the  alleged  criminal  embezzlement  took  place  while 
Mr.  Roach  was  an  oflBcer  of  a  bank  in  the  city  of  Washington. 

Still  another  substitute  was  introduced  on  April  14,  1893,  asking  that  "the 
Committee  on  Privileges  and  Elections  be  directed  to  inquire  and  consider  the 
question  whether  the  Senate  has  authority  or  jurisdiction  to  investigate  charges 
made  against  a  Senator  as  to  conduct  or  offenses  occurring  or  committed  prior  to 
his  election,  not  relating  to  his  duty  as  Senator  or  affecting  the  integrity  of  his 
election." 

Each  resolution  was  ordered  to  lie  over  and  be  printed. 

The  resolutions  were  the  subject  of  debate  in  the  Senate  April  14  and  15,  1893, 
but  no  vote  was  taken  thereon. 

(Citations:  Senate  Election  Cases,  vol.  I,  pp.  809-811;  Senator  Hoar's  first 
resolution,  Congressional  Record,  vol.  25,  p.  37 ;  Senator  Hoar's  substitute  reso- 
lution, Congressional  Record,  vol.  2~),  pp.  Ill,  112;  third  resolution.  Con- 
gressional Record,  vol.  25,  pp.  137,  138 ;  debate  on  the  three  resolutions,  Con- 
gressional Record,  vol.  25,  pp.  134,  138,  140-154,  155-159,  160-164.) 

3.    JOHN  H.  MITCHEXL,  OF  OREGON,  JANtJARY  17,   1905 

Mr.  Mitchell,  rising  to  a  question  of  personal  privilege  on  January  17,  1905, 
gave  his  answers  to  an  indictment  for  receiving  $2,000  to  use  his  influence  as  a 
Senator  in  a  conspiracy  to  defraud  the  United  States  out  of  a  portion  of  its 
pulilic  lands.  He  then  concluded:  "Now,  having  said  this  much  in  explanation 
of  and  in  answer  to  the  charges  against  me,  and  thanking  you  all  sincerely  for 


74 

your  courtoous  attention,  I  will  not  further  Intrude  on  your  presence."  Mr. 
]MitchelI  died  before  his  case  assumed  «ufh  a  phase  as  to  call  for  action  by  the 
Senare. 

(Citation  (not  in  Senate  Election  Cases)  :  Hinds'  Precedents  ol'  the  House  of 
Representatives,  vol  2.  1907 ;  f 'oxgresstonal  Record,  2d  sess.,  ."Sth  Cong.,  pp. 
959-96;^.) 

4.   REED   SMOOT,   OF   UTAH,    1903-7 

On  Fohrnary  2?>.  100.5,  the  credentials  of  Reed  Smoot  were  read  and  filed.  On 
the  same  day  Senator  Burrows  presented  a  memorial  of  citizens  of  Utah,  remon- 
stratinsT  against  the  admission  of  Reed  Smoot  to  a  seat  in  the  Senate ;  this  mem- 
orial wr.s  placed  on  file.  On  March  5,  1903,  Mr.  Smoot  was  sworn  in,  his  creden- 
tials being  in  order. 

On  January  16,  1904.  a  preliminary  hearing  was  held  before  the  Committee  on 
Privileges  and  Elections  at  which  counsel  appeared  for  the  memorialists  and  at 
which  Mr.  Smoot  also  appeared  in  person  and  by  counsel.  Statements  were 
made  by  counsel  for  the  respective  parties,  stating,  in  a  general  way,  what 
they  expected  to  prove  and  what  their  claims  were  as  to  the  legal  aspects  of  the 
case.     (Senate  Election  Cases,  vol.  II,  p.  956.) 

On  January  25,  1904,  Mr.  Burrows,  from  the  Committee  on  Privileges  and  Elec- 
tions, reported  the  following  resolution,  which  was  referred  to  the  Committee 
to  Audit  and  Control  the  Contingent  Expenses  of  the  Senate: 

"Re.9nlred,  That  the  Committee  on  Privileges  and  Elections  of  the  Senate,  or  any 
subcommittee  thereof,  be  authorized  and  directed  to  investigate  the  right  and 
title  of  Reed  Smoot  to  a  seat  in  the  Senate  as  a  Senator  from  the  State  of  Utah ; 
and  snid  committee,  or  any  subcommittee  thereof,  is  authorized  to  sit  during 
the  sessions  of  the  Senate  and  during  the  recess  of  Congress,  to  employ  a  stenog- 
rapher, to  sf^nd  for  persons  and  papers,  and  to  administer  oaths;  and  that  the 
expense  of  the  inciuii-y  shall  be  paid  from  the  contingent  fund  of  the  Senate 
upon  vouchers  to  be  approved  by  the  chairman  of  the  committee." 

The  Committee  to  Audit  and  Control  the  Contingent  Expenses  of  the  Senate 
re^-ortpd  this  resolution  v.ith  a  miner  amendment. 

The  Senate  proceeded  by  unanimous  consent  to  consider  the  resolution,  and 
agreed  to  it  as  amended. 

Voluminous  testimony  was  taken  by  the  committee  for  over  a  year. 

On  June  2,  1906.  Mr.  Burrows,  from  the  Committee  on  Privilpf'es  and  Elections, 
stated  that  the  committee  was  divided  on  the  question  of  the  nature  of  the 
resolution  which  was  to  follow  the  accentnncp  by  the  Senate  of  the  committee 
report ;  whether  it  should  be  one  to  expel  the  Senator,  or  whether  a  declaration 
that  he  was  not  entitled  to  his  seat  would  be  snfRcient. 

On  June  11,  1906,  l\Ir.  Burrows  submitted  the  report  of  the  Committee  on 
Privileges  and  Elections  (No.  42.53),  acoomianied  by  the  following  resolution: 

"7?r<ioircfi,  That  Reed  Smoot  is  not  entitled  to  a  seat  as  a  Senator  of  the 
United  States  from  the  State  of  Utah." 

The  report  concluded  that  Mr.  Smoot  was  a  member  of  the  First  Presidency 
and  Twelve  Apostles  of  the  Mormon  Church,  which  had  encouraged  the  practice 
of  polygamy  contrary  to  law  and  had  brought  about  a  union  of  church  and 
State  in  Utah  contrary  to  the  Constitution  of  Utah  and  the  Constitution  of  the 
United  States;  consequently,  Jlr.  Reed  Smoot  came  to  the  Senate,  not  as  the 
accredited  representative  of  the  'State  of  Utah  in  the  Senate  of  (he  United 
Statps.  but  as  the  choice  of  the  hierarchy  which  controls  the  church  and  has 
usurped  the  functions  of  the  State  in  said  State  of  Utah. 

A  minority  report  of  five  members  of  the  Committee  found  that  the  evidence 
did  not  sustain  the  charges  against  Smoot. 

Tile  Senate  debated  the  resolution  in  December  of  1906  and  in  January  and 
February  of  1907. 

It  was  voted  that  the  resolution  be  amended  as  follows:  "Two-thirds  of  the 
Senators  present  concurring  therein." 

But  on  February  20,  1907,  the  resolution  as  amended  was  defeated  by  a  vote 
of  28  yeas  and  42  nays. 

(Citations;  Senate  Election  Cases,  vol.  I,  pp.  928-986;  presentation  of 
memorial  of  citizens  of  Utah,  Congressional  Record,  vol.  36,  pp.  2496.  2689; 
swearinsr  in  of  Smoot,  and  postponement  of  contest  on  qualifications.  Congres- 
sional Record,  vol.  ,^7,  p.  1;  resolution  authorizing  and  directing  investigation 
of  the  ricrht  and  title  of  Smoot,  Concressional  Record,  vol.  38.  p.  1100:  reporting 
of  resolution  by  Committee  to  Audit  and  Control  the  Contingent  Expenses  of 
the  Senate — Congressional  Record,  vol.  38,  p.  1239;  report  by  Mr.  Burrows  that 
Smoot  was  not  entitled  to  his  seat,  Congressional  Record,  vol.  40,  p.  7715 ;  sub- 


75 

mission  of  uiajuiity  and  minority  reports,  Congkkssional  Rkcord,  vol.  40,  p. 
8218;  contains  citations  to  the  Senate  debate  on  the  Smoot  Resolution,  Senate 
Election  Cases,  vol.  I,  p.  985 ;  votes  on  the  resolution  and  amendments,  Con- 
GBESSioNAi.  Recokd,  vol.  41,  pp.  3428-3430.) 

6.   JOSEPH  R.  BURTON,  OF  KANSAS    (1006) 

Senator  Burton  was  convicted  of  violating  the  Federal  statute  forbidding 
Senators  or  Representatives  from  receiving  compensation  for  services  rendered 
before  any  department  of  the  United  States  Government. 

On  May  22,  1003,  Senator  Hale  introduced  the  following  resolution: 

"Resolved,  That  the  Committee  on  Privileges  and  Elections  be,  and  are  hereby, 
diiXH'ted  to  examine  into  the  legal  effect  of  the  late  decision  of  the  Supreme 
Court  in  the  case  of  Joseph  R.  Burton,  a  Senator  from  the  State  of  Kansas, 
and,  as  soon  as  may  be,  to  report  their  recommendation  as  to  what  action.  If 
any,  shall  be  taken  by  the  Senate." 

The  Vice  President  then  asked :  "Does  the  Senator  from  Maine  desire  the 
present  consideration  of  the  resolution  just  read?" 

Mr.  Halk.  "It  is  simply  directing  the  committee  to  investigate.  There  is  no 
objection,  I  suppose,  to  the  resolution." 

Tlie  resolution  was  considered  by  unanimous  consent,  and  agreed  to. 

On  June  5,  1906,  the  Vice  President  laid  before  the  Senate  the  following 
telegram,  which  was  read  and  ordered  to  lie  on  the  table: 

"ToPEKA,  Kans.,  June  J,,  1906. 
"Hon.  Charles  V/.  Fairbanks, 

"Vice  President  of  the  United  States, 
"Washington,  D.  C: 

"Hon.  .T.  R.  Burton  has  this  day  tendered  his  resignation  as  United  States 
Senator  fiom  Kansas,  and  I  have  accepted  the  Si'me." 

No  report  was  ever  made  to  the  Senate  on  the  resolution. 

(Citations:  Senate  Election  Cases,  vol.  I,  p.  005;  submission  of  resolution, 
Congressional  Record,  vol.  40,  p.  7211 ;  telegram  concerning  resignation,  CoN- 
gressionai.  Record,  vol.  40,  p.  7821.) 

6.  EGBERT  M.  LA  FOLLETTE,  OF  WISCONSIN  (1917-19) 

On  September  29,  1917  the  Minnesota  Commission  of  Public  Safety  presented 
a  petition  to  the  United  States  Senate  in  the  form  of  a  resolution,  whose  resolving 
clause  was  as  follows: 

"Resolved,  That  the  Minnesota  Commission  of  Public  Safety  respectfully 
petitions  the  Senate  of  the  United  States  to  institute  proceedings  looking  to  the 
expulsion  of  the  said  Robert  M.  La  Follette  from  the  Senate,  as  a  teacher  of 
disloyalty  and  sedition,  giving  aid  and  comfort  to  our  enemies,  and  hindering 
the  Government  in  the  conduct  of  the  war." 

This  petition  resulted  from  a  spewh  of  alleged  disloyal  nature  delivered  by 
Senator  La  Follette  in  St.  Paul,  Minn.,  on  September  20.  1917. 

Mr.  Kellogg  presented  the  petition,  and  it  was  referred  to  the  Committee  on 
Privileges  and   Elections. 

Concerning  the  referral,  Mr.  Gilbert  E.  Roe  notes  in  his  brief  in  behalf  of 
Senator  Piobert  M.  La  Follette,  that  "Senator  La  F^ollette  was  temporarily  ab.sent 
from  the  Senate  at  the  time  of  this  proceeding,  in  attendance  upon  a  meeting 
of  the  Committee  on  Finance,  and  had  no  information  cnnceining  the  presenta- 
tion of  the  resolution  or  of  its  references  to  the  Committee  on  Privileges  and 
Elections  until  some  time  thereafter.  He  had  no  opportunity,  therefore,  him- 
self to  then  move  for  an  investigation  of  said  charges  either  by  special  committee 
or  otherwise." 

The  Committee  on  Privileges  and  Elections  then  adopted  a  resolution  authoriz- 
ing a  subcommittee  "to  investigate  the  accuracy  of  the  report  of  the  speech  deliv- 
ered by  the  Honorable  Robert  M.  La  Follette,  United  States  Senator  irom  the 
State  of  Wisconsin,  September  20,  1917,  before  the  Nonpartisan  Leairue  at  St. 
Paul ;  to  investigate  the  accuracy  of  the  statements  made  by  the  Honorable 
Robert  M.  La  Follette  in  said  speech;  and  to  report  its  findings  to  the  full  cni- 
mittee  the  first  day  of  the  next  regular  session  of  Congress,  in  December  1917." 

Hearings  were  conducted  by  tlie  committee  dnrin;;  a  14-month  period.  Con- 
gressional precedents  and  court  decisions  were  reviewed,  but  no  witnesses  testi- 
fied against  La  Follette. 


76 

The  committee  on  January  17,  1919,  submitted  a  report  recommending  the 
adoption  of  the  following  resolution : 

"Resolved,  That  the  resolution  of  the  Minnesota  Commission  of  Public  Safety 
petitioning  the  Senate  of  the  United  States  to  institute  proceedings  looking  to 
the  expulsion  of  Robert  M.  La  Follette  from  the  Senate  because  of  a  speech 
delivered  by  him  at  St.  Paul,  Minn.,  on  September  20,  1917,  be,  and  the  same 
hereby  are,  dismissed  for  the  reason  that  the  speech  in  question  does  not 
justify  any  action  by  the  Senate." 

Senator  Poraerene  submitted  his  minority  views. 

The  resolution  submitted  by  the  majority  of  the  committee  to  dismiss  the 
petition  to  eject  Senator  La  Follette  was  adopted  by  the  Senate  after  a  short 
debate  on  January  16,  1919,  by  a  vote  of  50  to  21. 

(Citations:  Senate  Election  Cases,  vol.  IL  PP-  49-98;  hearings  before  a  sub- 
committee of  the  Committee  on  Privileges  and  Elections,  pt.  1,  65th  Cong.,  1st 
sess. ;  pt.  2,  65th  Cong.,  1st  sess. ;  pt.  2,  65th  Cong.,  2d  sess.,  in  Senate  Hearings, 
vol.  188,  Senate  Library ;  exchanges  of  correspondence  between  the  committee 
and  Senator  La  Follette,  Senator  La  Follette's  St.  Paul  speech,  brief  in  behalf 
of  Senator  Robert  M.  La  Follette  (filed  by  his  counsel,  Gilbert  E.  Roe  (also 
Congressional  Recokd,  vol.  57,  pt.  2,  pp.  15()6-1522),  and  Mr.  Pomerene's  minor- 
ity views — S.  Rept.  No.  614,  65th  Cong.,  3d  sess. ;  Senate  vote  adopting  the  com- 
mittee's resolution,  Congression^vt,  Record,  vol.  57,  pt.  2,  pp.  1525-1527. ) 

7.    ARTHUR  R.  GOULD,  OF  MAINE  (1926) 

On  December  G,  1926,  the  certificate  of  election  of  Arthur  R.  Gould  was  pre- 
sented to  the  Senate.  At  that  time  a  resolution  was  introduced,  pointing  out  that 
the  press  had  reported  that  in  1911  the  chief  justice  of  the  Supreme  Court  of  New 
Brunswick  had  found  in  an  official  opinion  that  Mr.  Gould,  "for  the  purpose  of 
advancing  his  own  interests,"  had  paid  a  $100,000  bribe  to  the  Premier  of  the 
Province  in  connection  with  a  railroad  venture.  The  resolving  clause  read  as 
follows : 

"Resolved,  That  in  that  absence  of  official  information  concerning  the  chai'ge 
thus  made,  the  qualifying  oath  be  administered  to  the  member-elect  and  that 
the  Committee  on  Privileges  and  Elections  be,  and  it  hereby  is,  directed  to  inquire 
into  the  truth  of  the  facts  so  reported  and  recited  and  to  report  the  same  at  the 
earliest  convenient  date  to  the  Senate,  with  such  recommendations  touching 
action  by  it  in  the  premises  as  may  seem  to  them  warranted." 

The  resolution  was  ordered  to  go  over  under  the  rule  and  the  oath  was  admin- 
istered to  Mr.  Gould. 

On  the  next  day,  the  Senate  debated  the  resolution.  Three  arguments  were 
advanced  on  behalf  of  Mr.  Gould:  That  tha Senate's  authority  to  investigate  the 
qualifications  of  Members  was  limited  to  questions  of  age,  residence,  and  citizen- 
ship ;  that  it  had  no  jurisdiction  to  inquire  into  alleged  offenses  committed  prior 
to  the  election  of  a  Senator ;  and  that  the  people  of  Maine,  though  familiar  witli 
the  charges,  had  elected  Gould  by  a  large  majority. 

Senator  Gould,  however,  took  the  floor  and  stated  that  he  welcomed  an  inves- 
tigation because  he  felt  that  he  would  be  vindicated  by  the  Senate  as  a  result 
thereof. 

The  resolution  was  adopted  and  referred  to  the  Committee  on  Privileges  and 
Elections  by  a  vote  of  70  to  7. 

From  January  4  to  January  27, 1927,  hearings  were  held  by  the  committee. 

On  March  4. 1927,  the  Committee  on  Privileges  and  Elections  submitted  Senate 
Report  No.  1715  exonerating  Mr.  Gould  and  recommending  that  "further  action 
in  the  instant  case  bt?  not  taken,  and  that  the  right  of  the  honorable  Arthur  R. 
Gould  to  a  seat  in  the  Senate  be  confirmed." 

(Citations:  Introduction  of  resolution  calling  for  investigation  of  the  charges 
against  Gould,  Congressional  Record,  vol.  68,  pt.  1,  pp.  8,  9 ;  Senate  debate  on 
the  resolution  and  adoption  of  the  resolution,  Congressional  Record,  vol.  68, 
pt.  1,  pp.  32-44 ;  hearings  before  a  subcommittee  of  the  Committee  on  Privileges 
and  Elections,  69th  Cong.,  2d  sess.,  Senate  hearings,  vol.  290  in  Senate  Library ; 
S,  Rept.  No.  1715,  Congeessional  Recoed,  vol.  08,  pt.  5,  p.  5914.) 

8.    WILLIAM  LANGEB,  OF  NOETH  DAKOTA   (1041) 

On  January  3,  1041,  a  protest  to  the  seating  of  William  Langer  was  filed  with 
the  Secretary  of  the  Senate  by  various  citizens.  On  the  same  day,  Senator 
Langer  was  permitted  to  take  the  oath  without  prejudice,  and  subject  to  parlia- 


77 

mentary  ruling  that  only  a  majority  of  the  Senate  would  he  required  to  pass  ou 
tht>  qiialififations  of  the  Senator-elect. 

Senator  Barklky  askeil  that  the  papers,  charja;es,  affidavits  and  other  docu- 
ments whicli  were  involved  in  the  protest  against  Senator  Lanokb's  seating  be 
referred  to  the  Committee  on  Privileges  and  Elections.  The  Vice  President  then 
declared  :  "Without  objection,  it  is  so  ordered." 

Hearings  were  held  before  the  Counuittee  ou  Privileges  and  Elections  on  Jan- 
uary 0, 1941  and  on  January  IG,  1041. 

A  subcommittee  conducted  preliminary  investigations  and  filed  a  report  for 
the  use  of  the  committee. 

The  full  committee  held  hearings  November  3  to  18,  1941  and  voted  by  13  to  3 
for  the  following  resolution  : 

"Resolved,  That  William  Langkr  is  not  entitled  to  be  a  Senator  of  the  United 
States  from  the  State  of  North  Dakota." 

The  committee  recommended  that  the  Senate  cast  a  vote  on  the  proposition 
that  the  case  "does  not  fall  within  the  constitutional  provisions  for  expulsion 
or  any  punishment  by  two-thirds  vote,  because  Senator  Langer  is  neither  charged 
with  nor  proven  to  have  committed  disorderly  behavior  during  his  membership 
in  the  Senate."  The  Senate  rejected  this  proposition  by  a  vote  of  45  to  37.  The 
Senate  then  voted  52  to  30  in  favor  of  Senator  Langei{'s  right  to  a  seat. 

(Citfjtions:  Filing  of  protest  and  swearing  in  of  Senator  Langkr,  Congbes- 
8I0NAL  Record,  vol.  87,  No.  1,  pp.  1  and  2 ;  Kept.  1010,  77th  Cong.,  2d  sess. ;  Senate 
debate  (last  2  days)  and  vote,  Congressional  Hecord,  vol.  88,  pt.  3,  pp.  2959, 
2970-2978,  303S-3065.) 

the  three  censure  cases 
1  and  2.    Senators  Tillman  and  McLaurin,  of  South  Carolina  {February  22, 1902) 

Tillman  charged  on  the  floor  that  improper  influence  had  been  used  in  chang- 
ing the  vote  of  McLaurin  upon  the  trr.ity  which  ended  the  Spanish-American 
War.  McLaurin  deilarcd  on  the  Hour  that  the  statement  was  a  "willful,  ma- 
licious, and  deliberate  lie."  Tillman  jumped  forward  and  struck  McLaurin,  and 
they  fought  till  separated. 

A  resolution  was  then  passed  that  the  two  Senators  be  "declared  in  contempt 
of  the  Senate,  and  the  matter  be  referred  to  the  Committee  on  Privileges  and 
Elections  with  instructions  to  report  to  the  Senate  what  action  shall  be  taken 
in  relation  thereto." 

The  Senate,  by  a  vote  of  54  to  12,  adopted  the  recommendation  of  the  com- 
mittee : 

"That  it  is  the  judgment  of  the  Senate  that  the  Senators  from  South  Caro- 
lina *  *  *  for  disorderly  behavior  and  flagrant  violation  of  the  rules  of 
the  Senate  *  *  *  deserve  the  censure  of  the  Senate,  and  they  are  hereby 
censured  for  their  breach  of  the  privileges  and  dignity  of  this  body;  and  from 
and  after  the  adoption  of  this  resolution,  the  action  adjudging  them  in  contempt 
of  the  Senate  shall  be  no  longer  in  force  and  effect." 

(Citations:  Hinds'  Precedents  of  the  House  of  Representatives,  vol.  2,  pp. 
1138-1142 ;  description  of  the  encounter,  and  Senate  order  of  contempt,  Con- 
gressional Record,  57th  Cong.,  1st  sess.,  pp.  2087-2090 ;  report  of  Committee  on 
Privileges  and  Elections  and  vote  of  the  Senate  approving  the  committee's  reso- 
lution of  censure,  Congressional  Record,  57th  Cong.,  1st  sess.,  pp.  2203-2207.) 

3.  Hiram  Binghum,  of  Connecticut  (November  4,  1929) 

On  September  30, 1929,  a  subcommittee  of  the  Judiciary  Committee  investigating 
lobbies  reported  that  Senator  P.inghara  had  appointed  Charles  L.  Eyanson,  assist- 
ant to  the  iiresident  of  the  Manufacturers  Association  of  Connecticut,  as  a  member 
of  his  staff.  Eyanson,  who  was  paid  i?10,(X)0  by  the  Connecticut  Manufacturers 
Association,  assisted  Senator  Bingham  in  connection  with  the  hearings  on  the 
tariff  bill  before  the  Committee  on  Finance.  Eyanson,  whom  Bin.^ham  had  sworn 
as  clerk  of  the  Committee  on  Territories  and  Insular  Possessions,  of  which  Bing- 
ham was  chairman,  came  into  secret  meetings  of  the  Finance  Committee.  Eyan- 
son turned  over  his  salary  as  clerk  of  the  Territories  Committee  to  Senator 
Bingham,  who  later  transmitted  a  check  of  $1,(X)0  to  Eyanson  when  the  latter 
departed  from  Washington. 

Senator  Norris  introduced  a  resolution  condemning  this  conduct. 

Senator  Bingham  replied  that  there  was  nothing  unethical  about  hiring  Eyan- 
son, since  his  sole  purpose  was  that  he  "might  better  to  prepared  to  present  the 
J.  236027 6 


78 

case  of  (his)  constituents  in  Ck)nnecticut,  both  employers  and  employees,  Iwth 
producers  and  consumers." 

After  extended  debate  an  amendment  disavowing  any  imputation  of  corrupt 
motives  was  incorporated  into  Senator  Norris'  resolution  and  the  resolution  was 
agreed  to — yeas  54,  nays  22 : 

"Resolved,  That  the  action  of  the  Senator  from  Connecticut,  Mr.  Bingham,  In 
placing  Mr.  Charles  L.  Eyanson  upon  the  official  rolls  of  the  Senate  and  his  use  by 
Senator  Bingham  at  the  time  and  in  the  manner  set  forth  in  the  report  of  the 
subcommittee  of  the  Committee  on  the  Judiciary  (Kept.  No.  43,  71st  Cong.,  1st 
sess.),  while  not  the  result  of  corrupt  motives  on  the  part  of  the  Senator  from 
Connecticut,  is  contrary  to  good  morals  and  senatorial  ethics  and  tends  to  bring 
the  Senate  into  dishonor  and  disrepute,  and  such  conduct  is  hereby  condemned." 

(Citations:  Cannon's  Precedents  of  the  House  of  Repre.sentatives.  vol.  6,  pp. 
408-410 ;  report  on  lobbyins:,  S.  Kept.  43.  71st  Cong.,  1st  sess. ;  Senator  Norris' 
resolution.  Congressional  Record,  71st  Cong.,  1st  sess.,  p.  5063 ;  resolution  as 
passed,  Congressional  Record,  71st  Cong.,  1st  sess.,  p.  5131.) 


Exhibit  No.  16 

S.  Res.  304,  S2d  Congress,  2d  Session 

IN  THE  SENATE  OF  THE  UNITED  STATES 

April  10,  1952 

Mr.  McCarthy  submitted  the  following  resolution;  which  was  referred  to  the 
Committee  on  Rules  and  Administration 

RESOLUTION 

"Whereas  the  Subcommittee  on  Privileges  and  Elections  of  the  Committee  on 
Rules  and  Administration  has  established  the  precedent  that  it  has  the  right 
and  the  duty  to  investigate  charges  made  by  any  Senator  against  another  Senator ; 
and 

Whereas  Senator  Benton,  of  Connecticut,  has  conducted  a  continuous  attack 
upon  Senator  McCarthy  because  of  Senator  McCarthy's  exposure  of  Communista 
and  fellow  travelers  in  the  State  Department ;  and 

Whereas  Senator  Benton  was  for  some  time  Assistant  Secretary  of  State  in 
char::e  of  International  Information  and  Cultural  Program;  and 

Whereas  a  number  of  the  individuals  named  by  Senator  McCarthy  as  either 
Communists,  fellow  travelers,  or  dupes  of  the  Kremlin  were  hired  or  retained 
in  office  by  Senator  Benton  ;  and 

Whereas,  during  TBenton's  aforesaid  Job  as  Assistant  Secretary  of  State  in 
Charge  of  International  Information  and  Cultural  Program,  the  removal  of  his 
assistant,  William  T.  Stone,  former  coeditor  of  Amerasia,  was  recommended 
by  State  Department  security  officers  in  the  following  language :  "In  behalf 
of  the  above-mentioned,  it  is  recommended  that  action  be  instituted  to  terminate 
his  services  with  the  State  Department  immediately.  It  is  suggested,  to  achieve 
this  purpose,  than  an  appropriate  officer  of  the  Department  should  inform  Mr. 
Stone  that  his  continued  employment  in  the  Department  is  embarrassing  to  the 
Department  and  lie  should  be  given  an  opportunity  to  resign.  If  he  sbould  not 
resign  voluntarily,  action  should  he  immediately  instituted  under  Civil  Service 
Rule  No.  3  to  terminate  his  service  with  the  Department."  But  William  Benton, 
his  immediate  supervisor,  refused  to  discharge  William  T.  Stone  ;  and 

Whereas  William  Benton  has  appeared  before  loyalty  boards  to  defend  those 
accused  of  Communist  activities  or  against  whom  letters  of  charges  have  been 
filed ;  and 

Whereas  William  Benton,  while  Assistant  Secretary  of  State  in  Charge  of 
International  Information  and  Cultural  Program,  was  responsible  for  tbe  pur- 
chase of  lewd  and  licentious  literature  which  also  followed  the  Communist  Party 
line,  such  as  the  "Memoirs  of  Hecate  County"  for  distribution  throughout  the 
world  as  part  of  our  educational  program,  all  with  the  apparent  purpose  and 
obvious  result  of  discrediting  America  in  the  eyes  of  the  world;  and 

Whereas  Benton,  while  Assistant  Secretary  of  State  in  Charge  of  International 
InfoimatioD  and  Cultural  Program,  was  also  responsible  for  the  purchase  and 


display  in  various  areas  of  the  world  of  lewd  art  works  and  Communist-produced 
art  works  at  great  expense  to  the  taxpayer,  all  with  the  apparent  purpose  and 
obvious  result  of  discrediting;  America  in  the  eyes  of  the  world;  and 

Whereas  a  book  by  Frank  Huglies,  entitled  "Prejudice  and  The  Press"  sets 
forth  that  Hiss  stated  he  acted  upon  the  recommendation  of  Benton  in  the 
selection  of  certain  personnel ;  and 

Whereas  it  appears  that  Benton,  as  Assistant  Secretary  of  State  in  Charge  of 
International  Information  and  Cultural  Program,  sent  proofs  of  Amerika  maga- 
zine to  Moscow  for  approval  and  editing  before  he  ordered  the  same  printed 
and  distributed  at  great  cost  to  the  taxpayers;  and 

Whereas  it  appears  that  Haldore  Hanson,  who  has  been  named  under  oath  as 
a  member  of  the  Communist  Party,  was  retained  and  defended  by  William 
Benton  ;  and 

Whereas,  William  Benton,  as  Assistant  Secretary  of  State  in  Charge  of  Inter- 
national Information  and  Cultural  Program,  defended  and  retained  in  his  employ, 
handling  secret  material,  certain  individuals  who  were  publicly  exposed  by 
Congressman  Fred  Busbey  as  sympathetic  to  the  Communist  cause  and  doing  the 
work  of  the  Communist  Party  ;  and 

Whereas  Benton  employed  individuals  such  as  Robert  T.  Miller,  who  was 
publicly  described  by  Congressman  Fred  Busbey  as  "one  of  the  most  dangerous 
Soviet  agents  ever  to  infiltrate  the  Department  of  State",  and  who  was  named 
under  oath  by  a  Government  witness  as  a  Soviet  agent;  and 

Whereas,  on  July  24,  1946,  the  Civil  Service  Commission  recommended  to 
Benton  that  Miller  be  discharged  on  the  grounds  of  disloyalty,  which  recom- 
mendation was  ignored  by  Benton,  who  retained  Miller  as  chief  in  charge  of 
publications  in  Benton's  division:  Now,  therefore,  be  it 

Resolved,  That  the  Committee  on  Rules  and  Administration  of  the  Senate  is 
authorized  and  directed  to  make  a  complete  investigation  of  all  the  facts  and 
circumstances  surrounding  the  aforementioned  matters  and  a  complete  in- 
vestigation of — 

(1)  campaign  funds  which  were  collected  by  Walter  Cosgriflf  for  Benton's  1950 
senatorial  campaign  and  accepted  by  Benton  and  unreported  by  him  in  violation 
of  the  laws  of  the  State  of  Connecticut  and  the  Federal  laws,  as  well  as  all  other 
moneys  collected  by  or  expended  by  Benton  or  any  individual  or  campaign  com- 
mittee acting  for  or  in  his  behalf ; 

(2)  the  use  by  Benton  of  fake  television  portrayals  of  Benton  during  his 
19r)0  campaign ; 

(3)  the  extent  to  which  State  Department  funds  have  been  paid  to  Benton's 
company,  Brittanica  Films  and  Enc.vclopedia  Brittanica; 

(4)  the  facts  surrounding  Benton's  printing  of  Encyclopedia  Brittanica  by 
cheap  labor  in  England  in  order  to  avoid  paying  the  printer's  union  scale  charged 
in  America ; 

(5)  Benton's  income  tax  returns  for  the  years  1047,  194S.  1949,  and  19."0 :  and 

(6)  such  further  investigations  with  respect  to  the  activities  and  assoriations 
of  William  Benton  as  the  committee  deems  necessary  in  order  to  recommend  to 
the  Senate  appropriate  action  in  the  case  of  William  Benton. 


Exhibit  No.  17 

RUy  7, 1952 
Honorable  .Joseph  R.  McCarthy, 

United  States  Senate,  Washington  25,  D.  C. 

My  Dkar  Senator  :  The  Subcommittee  on  Privileges  and  Elections  in  executive 
session  this  morning  voted  to  hold  public  hearings  on  S.  Res.  187  which  was 
introduced  in  the  Senate  by  Senator  William  Benton  of  Connecticut  on  August  6, 
1951,  and  was  thereafter  referred  to  this  Subcommittee  for  action. 

It  was  f)irther  decided  that  the  hearings  are  to  begin  on  Monday,  May  12, 
and  that  the  first  charge  to  be  heard  will  be  Senator  Benton's  "Case  Number 
Two ',  wherein  it  was  alleged  that  you  had  improperly  received  a  fee  of  .^10.000 
in  1948  from  the  Lustron  Corporation  for  an  article  on  housing  which  waa 
included  in  an  advertising  booklet  published  by  that  company. 

The  Subcommittee  has  not  yet  determined  the  order  of  witnesses  for  this 
first  case  but  we  expect  to  do  so  by  Friday  after  consultation  with  the  staff. 

In  the  meantime  I  do  wish  to  extend  to  you  the  opportunity  to  appear  at  the 


80 

hearings  for  the  purpose  of  presenting  testhnony  relating  to  this  charge.     The 
hearings  in  this  case  will  probably  continue  for  several  days  and  we  sliall 
make  whatever  arrangements  for  your  appearance  are  most  convenient  for  you. 
Sincerely, 

Guy  M.  Gillette,  Chairman 
mky 

Exhibit  No.  18 

United  States  Senate, 
Committee  on  Appropriations, 

May  8,  1952. 
Senator  Guy  Gillette, 

Chairman,  Subcommittee  on  Privileges  and  Elections, 
United  States  Senate.  Washington,  D.  G. 
Dear  Senator  Gili.ette:  This  is  to  acknowledge  receipt  of  your  letter  of 
May  7,  in  which  you  state  that  your  Subcommittee  on  Privileges  and  Elections 
plans  to  hold  public  hearings  on  Benton's  "Charge  No.  2"  against  me,  namely, 
that  it  was  improper  for  me  to  sell  the  rights  to  my  housing  book  to  the  Lustron 
Corporation. 
You  invite  me  to  testify. 
On  what  point  do  you  desire  information? 

The  following  facts  are  all  public  information  in  regard  to  the  sale  of  my  book : 
I  held  a  press  conference  in  1948  when  the  sale  was  completed  and  announced : 

( 1 )  The  sale  of  the  housing  book  ; 

(2)  That  Lustron  was  the  buyer; 

(3)  Tliat  Lustron  would  be  the  publisher ; 

(4)  That  the  book  would  be  sold  for  35(}  per  copy ; 

(5)  That  the  contract  provided  that  I  would  keep  the  lx)ok  up  to  d:ite 
for  five  years,  revising  it  whenever  required  by  any  changes  in  legislation, 
lending  practices,  or  other  matters  affecting  housing ; 

(6)  That  I  had  been  working  on  the  book  for  over  a  year  and  that  every 
line  had  been  checked  for  accuracy  by  every  government  agency  concerned 
with  housing. 

At  that  time  Lustron  had  been  loaned  money  by  the  RFC,  but  was  apparently 
flourishing  and  producing  an  excellent  prefabricated  house. 

During  the  housing  hearings  which  were  held  throughout  the  country,  I  found 
that  a  vast  number  of  young  men  were  not  even  remotely  aware  of  how  to  take 
advantage  of  the  many  housing  aids  which  we  had  provided  for  them  by  law. 
I  felt  that  writing  a  simple  explanatory  book  so  that  every  young  man  who  desired 
to  buy  or  build  a  home  could  easily  understand  how  to  take  advantage  of  the 
aids  which  we  had  provided  for  him  by  law  was  even  more  importaQt  than 
passing  the  proper  laws.    I  proceeded  to  do  this  task. 

Lustron  offered  a  royalty  of  10^  per  copy  and  promised  the  widest  circulation 
of  any  of  those  who  were  bidding  on  the  book.  The  Congressional  Record  of 
June  19,  1950  contains  the  correspondence  which  I  had  with  a  great  number  of 
publishers  whom  I  attempted  to  interest  in  putting  out  this  book  at  a  low  retail 
cost.  This  correspondence  starts  on  page  A-4764.  The  publishers'  replies  boiled 
down  to  the  statement  that  they  could  not  afford  to  publish  such  a  specialized 
book  at  a  low  cost. 

In  I9r)0,  after  RFC  had  foreclosed  on  Lustron,  Senator  Fulbright's  committee 
made  a  thorough  investigation  of  Lustron.  Senator  Fulbright,  who  by  the  greatest 
stretch  of  the  imagination  could  not  be  considered  a  friend  of  mine,  was  unable 
to  produce  any  evidence  that  McCarthy  ever  directly  or  indirectly  Interceded  with 
any  government  agency  in  behalf  of  Lustron.  The  unquestioned  evidence  before 
that  committee  was  that  '^Senator  McCarthy  has  never  been  interested  in  Lustron, 
has  never  interceded  for  Lustron,  has  never  done  anything  to  influence  any 
particular  thing  for  Lustron."  (Page  201,  Senate  Banking  and  Currency  Com- 
mittee, June  26,  19."j0)  .  The  evidence  also  shows  (page  200)  that  Lustron  received 
$46,000  for  the  sale  of  this  book  with  an  advertising  pamphlet.  Apparently  the 
purchase  and  sale  of  this  book  was  Lustron's  only  profitable  venture. 

I  understand  that  even  though  your  investigators  have  been  very  painstaking 
in  their  attempts,  they  have  been  unable  to  find  even  a  telephone  call  I  made  to 
anyone  in  behalf  of  Lustron.  If  the  Administration  k  j-w  at  a  single  contact 
which  I  ever  made  with  RFC  or  any  other  government  agency  in  behalf  of 
Lustron,  they  would  hardly  be  keeping  it  secret  to  protect  McCarthy. 


81 

1  am  curious  to  know  what  new  facts  you  exiwct  to  pioduct'  for  tlie  iMUflit  i)f 
the  public  at  tliis  public  hearing. 

Perhaps  you  are  goiug  to  produce  evidence  to  show  tliat  tlie  day  the  contract 
was  signed,  November  12,  liMS,  ten  days  after  the  Republicans  lost  control  of  the 
Senate  and  the  House  and  were  defeated  in  the  I'resideiUial  race,  Lustron  boujrlit 
this  book  from  me  because  of  the  tremendous  inthieiue  which  I  iiave  with  the 
Democrat  Administration.  Or  perhaps  you  hope  to  prove  that  the  preparati(Hi 
of  the  book  and  the  contract  to  keep  it  up  to  date  for  five  years  was  worth  less 
than  lO*;^  a  copy.  If  so,  I  wonder  if  you  plan  on  proving  that  some  of  the  speeches 
which  a  sizable  number  of  your  Democrat  friends  make  and  magazine  articles 
and  books  which  tliey  have  written  for  a  fee  are  worth  less  than  the  fee  paid. 

The  announcement  that  you  are  holding  public  hearings  after  nearly  a  year  of 
investigation  carries  the  implication  that  there  is  some  improper  conduct  in  con- 
nection with  the  sale  of  the  publication  to  Lustron.  I  would  like  to  know  what 
you  claim  that  improper  conduct  to  be.  I  assume  you  do  not  claim  it  is  improper 
for  a  Senator  to  write  a  book  or  magazine  article,  because  if  so,  you  will  have 
to  call  many  of  your  I>emocrat  friends  before  you. 

If  the  "improper  conduct"  is  the  sale  by  a  Senator  of  a  book  or  a  magazine  article 
to  an  apparently  flourishing  corporation  which  has  an  RFC  loan,  no  hearing  of 
any  kind  would  be  necessary,  because  there  can  be  no  dispute  about  the  fact  that 
the  book  was  sold  to  Lustron  and  that  Lustron  did  have  an  RFC  loan.  Therefore, 
I  assume  that  I  am  not  unreasonable  in  asking  you  what  new  facts  or  proof  you 
expect  to  produce  at  the  public  hearings.  Certainly,  you  would  not  be  using  the 
hearing  merely  as  a  sounding  board  for  more  of  the  Benton  type  of  smear  attacks. 

In  this  connection  I  call  your  attention  to  the  fact  that  Benton,  who  has  made 
the  complaint,  has  been  selling  his  publications  and  lilms  directly  to  the  State 
Department.  Do  you  plan  upon  investigating  this  matter?  Or,  like  Benton,  do  you 
consider  it  proper  for  a  Senator  to  take  money  directly  from  a  government 
agency  but  improper  to  deal  with  a  private  firm  which  has  a  loan  from  a  govern- 
ment agency. 

As  Chairman  of  the  conuuittee  investigating  Benton's  charges,  I  am  sure  you 
are  aware  that  VoJUical  Affairs,  the  official  Communist  Party  publication  which 
sets  forth  the  current  tasks  and  problems  of  the  Party,  has  ordered  Communist 
Party  members  to  "support  the  Benton  Resolution  to  oust  Mc<^arthy  from  the 
Senate."  (Political  Affairs,  October,  1951,  page  29.)  This  publication  has  been 
labelled  by  the  House  Committee  on  Un-American  xVctivities  as  the  theoretical 
organ  of  the  Communist  Party. 

Shortly  before  Benton  appointed  himself  to  lead  the  fight  to  smear  and  discredit 
McCarthy,  the  Communist  Party  through  its  then  secretary,  (Ins  Hall,  (who  has 
since  been  jailed)  officially  proclaimed  that  all  Communist  Party  members  must 
"yield  second  place  to  none  in  the  fight  to  rid  our  country  of  the  fascist  poison 
of  McCarthyism."      ( Daily  Worhcr,  ."May  4,  19.'(). ) 

The  Communist  Party  has  officially  proclaimed  and  published  in  the  Daily 
Worker  that  one  of  its  major  tasks  is  to  discredit  and  smear  McCarthy  out  of 
public  office. 

The  Communist  Party  of  Washington  and  Maryland  put  out  a  dire<-tive  to  all 
members  of  the  Communist  Party  under  the  heading,  "Unity  Can  Defeat  Mc- 
Carthyism." This  directive  was  signed  by  Philip  Frankfeld  (who  has  since  been 
jailed).  It  contains  the  following  order  to  Communist  Party  members:  "Re- 
member the  fact  that  the  main  enemy  is  McCarthyism  and  all  of  its  workings  and 
direct  your  main  fight  against  it." 

All  of  the  above  objwtives  of  the  Communist  Party  have  been  adopted  by 
William  P>onti>n  as  his  obj  'Ctives  also.  You  must  agree  that  the  aims  and  objec- 
tives of  both  the  ("onununist  Party  and  Benton  are  identical  insofar  as  McCarthy 
is  concerned.  The  only  question  is  whether  it  is  knowingly  or  through  stupidity 
that  Benton  is  trying  to  perform  what  the  Communist  Party  has  officially  and 
repeatedly  proclaimed  its  No.  1  task. 

Lenin  once  said,  'We  can  and  must  write  in  a  language  which  sows  among  the 
masses  hate,  revulsion,  scorn,  and  the  like  toward  those  who  disagree  with  us." 

I  am  sure  that  you  would  never  knowingly  allow  your  committee  to  serve 
the  Connnunist  cause.  However,  the  damage  done  is  the  same  regardless  of 
whether  it  is  knowingly  and  deliberately  done.  There  can  be  no  question  in  your 
mind  or  in  anyone's  mind  that  this  ycar-lonu'  investigation  by  your  Subcommittee 
would  never  have  been  commenced  if  I  had  not  been  exiHtsing  Communists  in 
government.  Already  ten  of  those  whom  I  have  exposed  have  either  been  con- 
victed or  removed  under  the  Loyalty  Program.  This  is  only  a  small  indication 
of  how  badly  tlie  Communist  Party  is  being  hurt.     The  Communists  will  have 


82 

scored  a  great  victory  if  tliey  can  convince  every  other  Senator  or  Congressman 
that  if  he  attouiprs  to  expose  uiuler-cuver  Communists,  he  will  be  subjected  to 
the  same  type  of  intense  smear,  oven  to  the  extent  of  using  a  Senate  Committee 
for  the  purpose.  They  will  have  frightened  away  from  this  fight  a  vast  number 
of  legislators  who  fear  the  political  effect  of  being  inundated  by  the  Communist 
Party  line  sewage. 

If  you  have  evidence  of  wrong  doing  on  McCarthy's  part,  which  would 
justify  removal  from  the  Senate  or  a  vote  of  censure  by  the  Senate,  certainly 
you  have  the  obligation  to  produce  it.  However,  as  you  well  know,  every 
member  of  your  committee  and  staff  privately  admits  that  no  such  evidence  is  in 
existence.  It  is  an  evil  and  dishonest  thing  for  the  Subcommittee  to  allow 
itself  to  be  used  for  an  evil  purpose.  Certainly  the  fact  that  the  Democrat 
Party  may  temporarily  benefit  thereby  is  insuflacient  justification.  Remember 
the  Communist  Party  will  benefit  infinitely  more. 
Sincerely  yours, 

Joe  McCarthy. 

Joe  McCarthy. 


Exhibit  No.  19 

[Copy] 

May  8,  1952 
Senator  Guy  M.  Gillette, 

Chairman,  Subcommittee  on  Privileges  and  Elections, 
United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Gillette  :  I  understand  that  your  Subcommittee  has  decided 
to  commence  holding  open  hearings  Monday  on  Benton's  resolution  to  expel 
McCarthy  from  the  Senate  because  of  his  fight  to  expose  Communists  in  the 
Democrat  Administration.  I  further  understand  that  you  have  taken  no  action 
whatsoever  on  the  resolution  to  investigate  Benton. 

Before  I  urged  the  Senate  to  vote  to  continue  the  life  of  your  Subcommittee,  we 
received  your  unqualified  promise  to  proceed  to  investigate  the  Benton  case  just 
as  expeditiously  as  the  attempted  expulsion  of  McCarthy.  I  now  understand 
that  you  have  not  even  so  much  as  suggested  that  the  resolution  asking  for  an 
investigation  of  Benton's  activities  be  referred  to  your  Subcommittee ;  that  noth- 
ing whatsoever  has  been  done  in  the  Benton  case  although  weeks  have  passed 
since  that  resolution  was  introduced  and  you  made  that  promise  on  the  Senate 
floor.  I  understand  you  excuse  your  actions  to  the  press  by  stating  that  the 
Rules  Committee  had  not  referred  the  Benton  case  to  you. 

You  and  Benton  are  members  of  the  Rules  Committee  and  as  you  well  know, 
the  Democrats  have  the  majority  of  thp.  votes  on  that  Committee  and  can  stall 
the  Benton  case  indefinitely  without  referring  it  to  your  Subcommittee.  I  am 
sure  you  will  agree  that  this  is  a  most  dishonest  evasion  of  a  promise  made  to 
and  relied  upon  by  the  Senate. 

In  view  of  the  amount  of  time  and  money  spent  investigating  McCarthy,  this 
stalling  in  the  Benton  case  cannot  help  but  more  firmly  convince  the  American 
people  that  your  Subcommittee  is  being  dishonestly  used  as  an  arm  of  the  Demo- 
crat National  Committee. 
Sincerely  yours, 

Sgd/  Joe  McCarthy 
Joe  McCarthy 
McC :  dt  

Exhibit  No.  20 

[Copy] 

May  10, 1952 
Honorable  Joseiph  R.  McCarthy, 

United  States  Senate,  Washington,  D.  0. 
My  Dear  Senator  McCarthy:  I  acknowledge  receipt  of  your  letter  of  May 
8th  which  was  written  in  response  to  a  letter  addressed  to  you  by  me  as  Chair- 
man of  the  Subcommittee  on  Privileges  and  Elections  under  date  of  May  7th. 
Your  reply  of  the  8th  states  factual  matter  in  connection  with  the  charges  made 
by  Senator  Benton  in  his  resolution  and  which  have  been  listed  as  "charge 
No.  2." 


83 

You  will  note  from  my  lettor  of  tlio  7th  that  I  statod  in  the  concliHlinj;  para- 
graph "I  shall  extend  to  you  the  opportunity  to  appear  at  the  hearin;rs  for  the 
purpose  of  presenting  testimony  relating  to  this  charge.  The  hearings  in  this 
case  will  probably  continue  for  several  days  and  we  shall  make  whateN  er  arrange- 
ments for  your  appearance  are  most  convenient  for  you." 

The  Subcounnitlee,  in  determining  its  further  action  relative  to  the  Benton 
resolution,  decided  to  take  up  the  charges  one  by  one  and,  if  additional  evidence 
was  desired  in  addition  to  the  staff  report  that  was  before  us,  that  tlie  Sulicom- 
mittee  would  undertake  to  develop  further  testimony  where  it  seemed  desirable 
to  do  so.  At  their  meeting  on  May  7th  the  Subcommittee  concluded  that  they 
wished  to  take  some  additional  testimony  with  reference  to  charge  No.  2  and 
fixed  next  Monday,  May  12th,  as  the  date  for  the  hearing,  at  which  witnesses 
under  them  could  be  heard. 

It  seemed  the  courteous  thing  to  do  to  invite  you  to  attend  so  you  could  have 
full  opportunity  to  present  additional  evidence  or,  at  a  later  period,  to  pre.sent 
any  evidence  you  might  wish  to  make  available  to  us  in  refutation  or  explanation 
of  any  evidence  which  you  adduced  at  the  heariu;.  That  was  the  purpose  of  my 
letter  to  you  and  you  were  assured  that  the  opportunity  will  cimtinue  to  be 
yours  to  present  siuh  matter  as  you  wish  to  present  to  us  in  connection  with  this 
hearing  and  to  attend,  if  you  desire  to  do  so. 

I  assume  also  that  you  would  have  no  objection  to  having  put  in  the  Record 
of  the  hearings  your  letter  of  tJie  Sth.  Unless  I  receive  the  request  from  you  for 
me  not  to  do  so  when  the  hearings  are  oi)eiied  next  Moi.day,  I  shall  put  in  the 
Ilecoid  my  letter  of  the  7th  addressed  to  you  and  your  reply  of  the  Sth  addressed 
to  me. 

With  personal  greetings,  I  am 
Sincerely, 

Guy  M.  Gd.i.kttk. 
G.MG :  cc 


ExniitiT  No.  21 

May  11,  19.',2 
Senator  Guy  Gillktte 
Senator  A.  S.  Monroney 
Senator  Thomas  Hknnings 

Genti.kmkn  :  I  have  learned  with  regret  that  your  public  hearings  are  to  open 
tomorrow  without  the  presence  of  your  star  witness.  You  have  my  deepest 
sympathy. 

Some  Doubting  Thomases  might  question  the  importance  of  this  witness, 
except  that  after  nearly  a  year  of  investigating,  you  and  your  start'  decided 
that  the  public  hearings  must  open  with  his  intelligently  presented,  clear-out 
exjw.se  of  the  dangers  of  Mc<"arthyism.  The  Nation  owes  you  a  debt  of  gratitude 
for  so  carefully  and  lionestly  developing  this  witness  who  could  have  advised 
the  Senate  and  the  voters  of  Wisconsin  to  get  rid  of  McCarthy.  If  only  you 
had  set  the  hearings  10  days  earlier  before  the  judge  committed  your  star 
witness  to  an  institution  for  the  criminally  insane,  you  would  not  have  been 
deprived  of  this  important  link  in  the  chain  of  evidence  against  McCarthy. 

Some  shallow  thinkers  may  say  that  you  gentlemen  are  dishonest  to  have 
planned  to  use  your  committee  as  a  sounding  board  to  headline  the  statements 
of  a  witness  after  your  staff  had  reported  he  was  mentally  unbalanced.  I  beg 
you  not  to  let  this  distract  you  from  the  honest,  gentlemanly  job  you  are  doing. 
Those  critics  fail  to  realize  that  everything  is  ethical  and  honest  if  it  is  done 
to  expose  the  awfulness  of  McCarthyism.  After  all,  had  not  your  staff  repoited 
that  while  this  witness  was  mentally  deranged,  his  mental  condition  would  help 
to  make  him  an  excellent  witness  for  you. 

Certainly,  you  cannot  be  blam<'d  for  not  knowing  that  some  unthinking  judge 
would  do  the  country  the  great  disservice  of  committing  him  to  a  home  for 
the  insane  before  the  committee  had  a  chance  to  publicize  and  place  its  stamp 
of  approval  on  his  st;itements  about  McCarthy.  Certainly,  you  cannot  be  blamed 
for  being  unable  to  distinguish  between  his  testimony  and  the  testimony  of  the 
other  witness,  Benton,  who  asked  for  and  was  given  the  right  to  appear  before 
your  committee  and  publicly  "expose"  McCarthy. 

The  Communist  Party,  which  is  also  doing  an  excellent  job  of  exposing  the 
evils  of  McCarthyism,  has  repeatedly  prrKlaimed  that  no  stone  be  left  mUurned 
In  the  effort  to  remove  McCarthy  from  public  life.     As  Lenin  said,  "resort  to 


84 

lies,  tvir-kery,  deceit,  and  dishonesty  of  nny  type  necessary,"  in  order  to  destroy 
those  who  stand  in  the  way  of  the  Communist  movement. 

I  ask  you  peutlemen  not  to  be  disturbed  by  those  wlio  point  out  that  your  com- 
mittee is  trying  to  do  what  the  Communist  Party  has  officially  proclaimed  as 
its  No.  1  task.  You  just  keep  rijrlit  on  in  the  same  honest,  painstaking  way  of 
developing  the  truth.  The  thinking  people  of  this  nation  will  not  be  deceived 
by  those  who  claim  that  what  you  are  doing  is  dishonest.  After  all,  you  must 
serve  the  interests  of  the  Democrat  Party — there  is  always  the  chance  that  the 
country  may  be  able  to  survive.  What  better  way  could  you  find  to  spend  the  tax- 
payers money?  After  all,  isn't  McCarthy  doing  the  terribly  unpatriotic  and  un- 
ethical thing  of  proving  the  extent  to  which  the  Democrat  Administration  is 
Communist  ridden?  Unless  he  can  be  discredited,  the  Democrat  Party  may  be 
removed  from  power. 

Again  may  I  offer  my  condolences  upon  your  failure  to  have  your  star  wit- 
ness present  as  plainied  to  open  the  testiinony.    Do  you  not  think  the  judge  who 
committed  him  should  be  investigated? 
Sincerely  yours, 

Joe  McCarthy 
Joe  McCarthy 


Exhibit  No.  22 

May  13, 1952 
Senator  Joe  McCarthy, 

Senate  Office  Bnilding,  Washington,  D.  C. 
My  Dear  Sen.vtok  :  Under  recent  date  you  addressed  a  letter  to  uie  referring 
to  the  fact  that  I  had  stated  on  the  flo<ir  of  the  Senate  that  if  your  resolution 
directed  at  Senator  Benton  was  referred  to  our  Subcommittee,  we  would  act  as 
expeditiously  as  we  had  acted  on  the  Benton  Resolution  directed  against  you. 
As  you  know,  the  Rules  Committee  to  which  this  resolution  was  referred  has  not 
referred  the  resolution  to  the  Subcommittee  on  Privileges  and  Elections.  It 
should  perhaps  be  indicated  that  you,  as  author  of  the  resolution,  could  well  ask 
Senator  Hayden  when  action  would  be  taken  by  the  Rules  Committee,  either  to 
act  on  the  resolution  as  a  committee  or  to  refer  it  to  a  subgroup.  If  it  should  be 
referred  to  our  Subcommittee,  I  assure  you  it  will  be  handled  as  expeditiously 
as  possible  with  the  volume  of  work  we  have  to  do. 
Sincerely, 

Guy  M.  Gillette 
GMG  :  oc 


Exhibit  No.  23 

United  States  Senate, 
CoiikiTTEE  ON  Rules  and  Ad.aiinistkation, 

May  28,  1952 
Honorable  Guy  M.  Gillette, 

Chairman,  Subcommittee  on  Privileges  and  Elections 
of  the  Committee  on  Rules  and  Administration, 

Room  106,  Senate  Office  Building,  Washington,  D.  C. 
Dear  Senator  Ghxette  : 

This  is  to  advise  you  that  the  enclosed  resolution  (S.  Res.  304)  to  investigate 
certain  matters  concerning  Senator  William  Benton,  of  Connecticut,  was  today 
referred  to  your  Subcommittee  for  such  consideration  as  it  deems  appropriate. 
Very  sincerely  yours, 

Carl  Hayden 
Carl  Hayden 
Chairman 


85 

S.  Res  304.  82d  Congress.  2d  Session 

IN  THE  SENATE  OF  THE  UNITED  STATES 

Apbil  10,  1052 

Mr.  McCabthy  submitted  the  following  resolution ;  whioh  was  referred  to  the 
Committee  on  Rules  and  Administration 

RESOLUTION 

Whereas  the  Subcommittee  on  Privileges  and  Elections  of  the  Committee  on 
Rales  and  Administration  has  established  the  precedent  that  it  has  the  right  and 
the  duty  to  investigate  charges  made  by  any  Senator  against  another  Senator ;  and 

Whereas  Senator  Benton,  of  Connecticut,  has  conducted  a  continuous  attack 
upon  Senator  McCarthy  because  of  Senator  McCarthy's  exposure  of  Communists 
and  fellow  travelers  in  the  State  Department;  and 

Whereas  Senator  Benton  was  for  some  time  Assistant  Secretary  of  State  in 
charge  of  International  Information  and  Cultural  Program ;  and 

Whereas  a  number  of  the  individuals  named  by  'Senator  McCarthy  as  either 
Communists,  fellow  travelers,  or  dupes  of  the  Kremlin  were  hired  or  retained 
in  ollice  by  Senator  Benton  ;  and 

Whereas,  during  Benton's  aforesaid  job  as  Assistant  Secretary  of  State  in 
Charge  of  International  Information  and  Cultural  Program,  the  removal  of 
his  assistant,  William  T.  Stone,  former  coeditor  of  Amerasia,  was  recommended 
by  State  Department  security  officers  in  the  following  language:  "In  behalf  of 
the  above-mentioned,  it  is  recommended  that  action  be  instituted  to  terminate 
his  services  with  the  State  Department  immediately.  It  is  suggested,  to  achieve 
this  purpose,  that  an  appropriate  officer  of  the  Department  should  inform  Mr. 
Stone  that  his  continued  employment  in  the  Department  is  embarrassing  to  the 
Department  and  he  should  be  given  an  opportunity  to  resign.  If  he  should  not 
resign  voluntarily,  action  should  be  immediately  instituted  under  Civil  Service 
Rule  No.  3  to  terminate  his  service  with  the  Department."  But  William  Benton, 
his  immediate  supervisor,  refused  to  discharge  William  T.  Stone;  and 

Whereas  William  Benton  has  appeared  before  loyalty  boards  to  defend  those 
accused  of  Communist  activities  or  against  whom  letters  of  charges  have  been 
filed ;  and 

W^hereas  William  Benton,  while  Assistant  Secretary  of  State  in  Charge  of 
International  Information  and  Cultural  Program,  was  responsible  for  the  pur- 
cha.se  of  lewd  and  licentious  literature  which  also  followed  the  Communist  Party 
line,  such  as  the  '"Memoirs  of  Hecate  County"  for  distribution  throughout  the 
world  as  part  of  our  educational  program,  all  with  the  apparent  purpose  and 
obvious  result  of  discrediting  America  in  the  eyes  of  the  world;  and 

Whereas  Benton,  while  Assistant  Secretary  of  State  in  Charge  of  International 
Information  and  Cultural  Program,  was  also  responsible  for  the  purchase  and 
display  in  various  areas  of  the  world  of  lewd  art  works  and  Communist-produced 
art  works  at  great  expense  to  the  taxpayer,  all  with  the  apparent  purpose  and 
obvious  result  of  discrediting  America  in  the  eyes  of  the  world  ;  and 

Whereas  a  book  by  Frank  Hughes,  entitled  "Prejudice  and  The  Press"  sets 
forth  that  Hiss  stated  he  acted  upon  the  recommendation  of  Benton  in  the 
selection  of  certain  personnel ;  and 

Whereas  it  appears  that  Benton,  as  Assistant  Secretary  of  State  in  Charge  of 
International  Information  and  Cultural  Program,  sent  proofs  of  Amerlka  maga- 
zine to  Moscow  for  approval  and  editing  before  he  ordered  the  same  printed  and 
distributed  at  great  cost  to  the  taxpayers  ;  and 

Whereas  it  appears  that  Haldore  Hanson,  who  has  been  named  under  oath 
as  a  member  of  the  Communist  Party,  was  retained  and  defended  by  William 
Benton ;  and 

Whereas,  William  Benton,  as  Assistant  Secretary  of  State  in  Charge  of  Inter- 
national Information  and  Cultural  Program,  defended  and  retained  In  his  employ, 
handling  secret  material,  certain  individuals  who  were  publicly  exposed  by  Con- 
gressman Fred  Busbey  as  sympathetic  to  the  Communist  cause  and  doing  the 
work  of  the  Communist  Party  ;  and 


86 

Whereas  Benton  employed  individuals  such  as  Robert  T.  Miller,  who  was 
publicly  described  by  Congressman  Fred  Busbey  as  "one  of  the  most  dangerous 
Soviet  agents  ever  to  infiltrate  the  Department  of  State",  and  who  was  named 
under  oath  by  a  Government  witness  as  a  Soviet  agent ;  and 

Whereas,  on  July  24, 1946,  the  Civil  Service  Commission  recommended  to  Benton 
that  Miller  be  discharged  on  the  grounds  of  disloyalty,  which  recommendation 
was  ignored  by  Benton,  who  retained  Miller  as  chief  in  charge  of  publications 
in  Benton's  division  :  Now,  therefore,  be  it 

Resolved,  That  the  Committee  on  Rules  and  Administration  of  the  Senate  is 
authorized  and  directed  to  make  a  complete  investigation  of  all  the  facts  and 
circumstances  surrounding  the  aforementioned  matters  and  a  complete  in- 
vestigation of — 

(1)  campaign  funds  which  were  collected  by  Walter  CoKgriff  for  Benton's  1950 
senatorial  campaign  and  accepted  by  Benton  and  unreported  by  him  in  violation 
of  the  laws  of  the  State  of  Connecticut  and  the  Federal  laws,  as  well  as  all  other 
moneys  collected  by  or  expended  by  Benton  or  any  individual  or  campaign 
committee  acting  for  or  in  his.behalf ; 

(2)  the  use  by  Benton  of  fake  television  portrayals  of  Benton  during  his 
1950  campaign ; 

(3)  the  extent  to  which  State  Department  funds  have  been  paid  to  Benton's 
company,  Brittanica  Films  and  Encyclopedia  Brittanica  : 

(4)  the  facts  surrounding  Benton's  printing  of  Encyclopedia  Brittanica  by 
cheap  labor  in  England  in  order  to  avoid  paying  the  printers'  union  scale  charged 
in  America ; 

(5)  Benton's  income  tax  returns  for  the  years  1947,  1948,  1949,  and  1950;  and 

(6)  such  further  investigations  with  respect  to  the  activities  and  associations 
of  William  Benton  as  the  committee  deems  necessary  in  order  to  recommend 
to  the  Senate  appropriate  action  in  the  case  of  William  Benton. 


Exhibit  No.  24 

[Copy] 

JXTRE  9,  1952 

Honorable  Joseph  R.  McCabtht, 

United  States  Senate,  Washington,  D.  C. 
Mt  Dear  Senator:  Recalling  that  .vou  advised  me  that  you  would  be  unable 
to  arrange  to  present  a  statement  before  the  Subcommittee  on  Privileges  and 
Elections  last  week,  and  that  you  would  be  absent  for  the  first  three  days  in 
the  present  week,  I  have  fixed  this  Thursday,  10 :  00  a.  m.,  for  you  to  present  a 
statement  to  us  relative  to  your  Resolution  concerning  Senator  Benton. 

Under  the  rules  that  we  follow  in  the  case  of  the  Benton  Resolution,  Senator 
Benton  will  be  privileged  to  be  present  but  not  to  cross-examine.    The  hearings 
will  be  held  in  Room  104B. 
Sincerely, 

Gut  M.  Gillette 
GMG  :  re 


Exhibit  No.  25 

United  States  Senate, 
Committee  on  Appropriations, 

June  11, 1952. 
Senator  Guy  Giu.ettk, 

Chairman,  Subcommittee  on  Elections  and  Privileges, 
United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Gillette:  This  is  to  acknowledge  receipt  of  your  letter  of 
June  9. 

I  will  be  unable  to  be  with  you  Thursday  for  the  reason  that  I  am  leaving 
tomorrow  to  attend  the  State  Republican  Convention  In  Milwaukee,  Wisconsin. 
I  shall  also  be  tied  up  Monday  and  Tuesday  of  next  week,  but  will  be  available 
on  Wednesday,  Thursday,  or  Friday. 


87 

Incidentally,  I  note  in  your  statement  to  the  press  you  said  you  expected  me 
to  give  all  of  the  evidence  on  Benton.  I  assume  this  was  a  mis^iuotation,  in  that 
you  have  previously  assured  me  and  the  Senate  that  you  would  proceed  in  the 
Benton  case  in  the  same  manner  you  proceeded  in  tlie  McCarthy  case,  which 
means  that  you  will  have  your  investigators  dig  ui)  the  evidence  on  Benton  after 
I  give  you  the  necessary  leads  and  fields  to  be  investigated. 

In  view  of  the  fact  that  the  end  of  the  session  is  approaching,  I  would  suggest 
that  yi>u  immediately  have  your  investigators  obtain  Benton's  federal  income 
tax  returns  for  the  years  1047,  1948,  11)49,  and  1950.  You  should  have  no  hesi- 
tancy or  dilliculty  about  doing  this,  in  that  as  you  will  recall  your  investigators 
obtained  my  income  tax  returns  and  made  all  the  information  contained  therein 
available  to  the  press. 

May  I  hear  from  you  as  to  which  of  the  above  three  dates  are  most  agree- 
able to  you? 

Sincerely  yours, 

Joe  McCarthy 
Joe  McCarthy 
Mc<; :  d 


Exhibit  No.  2t> 

Umtkd  Statf.s  Sknate, 
Committee  on  Appkopkiations, 

June  12, 1{)52. 
Senator  Guy  M.  Giusttk, 

Chairm<in,  Subcommittee  on  Priv-ilefies  and  Elections, 
United  States  Senate,  Washinffion,  D.  C. 
Dear  Senator  Gillette:  This  will  confirm  our  conversation  on  the  Senate 
lioor  that  I  will  be  available  either  Thursday  or  Friday  of  next  week  to  appear 
before  your  Committee.  As  I  told  you  on  the  floor,  it  may  be  extremely  difficult 
lor  nie  to  appear  on  AVednesday.  I  understatid  from  our  conversation  tliat  IV-nton 
wants  to  be  present  but  will  be  unable  to  appear  Thursday  or  Friday. 

Under  the  circumstances,  it  will  be  perfectly  agreeable  to  me  to  appear  Satur- 
day, if  necessary.  There  is  also  the  remote  possibility  that  I  may  be  able  to 
meet  with  your  Committee  Wednesday,  although  I  doubt  it  very  much  at  this 
time. 

As  I  mentioned  to  you  on  the  Senate  floor,  my  resolution,  among  other  things, 
deals  witli  B.enton's  tax  dilliculties  for  the  years  1047  to  lOHf),  inclusive.  In  view 
of  tlie  fact  that  the  end  of  the  session  is  approaching,  I  can  see  no  reason  why 
your  staff  shouldn't  imme<liately  obtain  Benton's  income  tax  returns  for  those 
years  as  they  obtained  my  returns. 

You  did  assure  me  that  you  would  handle  the  Benton  case  the  same  as  mine. 
I  think  this  is  a  good  time  to  start. 
Very  sincerely  yours, 


Joe  McCarthy 
Joe  McCarthy 


McC :  r 


ExHiHlT  No.  27 

June  18,  19r)2 
Hon.  .losKPii  K.  McCakthy, 

United  States  Senate,  Washington,  D.  C. 
Dear  Senator  McCarthy:  With  reference  to  your  letter  dated  June  12,  please 
be  advised  that  in  view  of  the  difliculty  of  arranging  a  date  for  your  appearance 
this  week  before  the  Subcommittee,  a  date  satisfactory  to  both  yourself  and  to 
Senator  Benton,  I  have  ordered  a  meeting  of  the  Subcommittee  to  be  held  on 
Mondiiy,  June  23rd,  in  tlie  Caucus  Boom  at  10  a.  m. 

The  Subcommittee  will  at  that  time  receive  a  substantiation  from  you  of  the 
charges  contained  in  S.  Res.  304. 
Sincerely  yours, 

Guy  M.  Gillette,  Chaimian 
.IBM:  inkv 


Exhibit  No.  28 

United  States  Senate, 

Oo^rMITTEE  ON  APPROPRIATIONS, 

June  19,  1952 
Senator  Guy  Gillette, 

Chairman,  Subcommittee  on  Elections  and  Privileges, 
United  States  Senate.  Washincjton,  D.  G. 
Dear  Senator  Gillette  :  I  have  just  rei^eived  your  letter  of  June  18  and  uote 
that  you  are  unable  to  set  the  Benton  hearing  for  either  Thursday,  Friday,  or 
Saturday  of  this  week,  the  dates  which  I  had  previously  told  you  I  had  open. 
I  further  note  that  you  have  set  it  for  Monday,  June  23. 

Enclosed  is  a  copy  of  a  Court  order  which  has  been  served  upon  me,  ordering^ 
me  to  appear  in  Syracuse,  New  York,  in  the  case  of  McCarthy  vs.  Syracuse  Post- 
Standard,  on  Monday,  June  23.  It  is  impossible  at  this  time  to  know  how  long- 
the  deposition  in  Syracuse  will  last. 

I  understand  that  the  Benton  resolution  has  been  referred  to  your  subcom- 
mittee for  investigation.  Will  you  please  inform  me  whether  such  investigation 
has  been  commenced. 

I  am  also  enclosing  for  your  information  an  editorial  and  reiwrt  which  appeared 
in  a  Hartford  paper  and  which  would  indicate  that  Benton  is  spending  huge 
amounts  of  money  in  the  production  and  distribution  of  films  to  be  used  in  his 
campaign.  You  will  note  Benton's  claim  that  this  is  non-i)olitical — apparently 
for  the  purpose  of  avoiding  the  limitation  of  expenditures  in  a  Senatorial 
campaign. 

May  I  hear  from  you  as  to  whether  you  intend  to  investigate  this  matter  also. 
Sincerely  yours, 

Joe  McCarthy 
JoE  McCaethy 
McC :  d 

[Copy] 

At  a  Special  Term  of  the  Supreme  Court  held 
in  and  for  the  County  of  Onondaga,  County 
Court  House  in  the  City  of  Syracuse,  New 
York,  on  the  5th  day  of  May,  1952 

Present  :  Hon.  Jesse  E.  Kingslet,  Justice 

State  of  New  York 

StJPBEME  CotTRT  County  of  Onondaga 

Joseph  R.  McCarthy,  Plaintiff 

vs. 

Thk  Post-Standabo  Company,  Samuel  I.  Newhouse  and  Robert  L.  Voouhees, 

Defendants 

The  plaintiff  herein,  Joseph  R.  McCarthy,  having  appeared  on  the  29th  day  of 
March,  1952,  before  William  B.  Mangin,  Esq..  as  Commissioner  of  Deeds  for  exam- 
ination before  trial  pursuant  to  an  order  made  herein  by  Hon.  Jesse  E.  Kingsley, 
dated  March  11, 1952  ;  and  the  defendants  appearing  on  said  examination  by  Bond, 
Schoeneck  &  King,  (Tracy  H.  Ferguson.  Esq.,  of  counsel)  their  attorneys,  and  the 
plaintiff  appearing  by  RoUand  B.  Marvin,  of  counsel,  and  said  plaintiff  having 
been  first  duly  sworn  by  said  William  B.  Mangin,  as  Commissioner  of  Deeds,  and 
objections  to  certain  questions  propounded  by  defeuants'  counsel  upon  said 
examination  having  been  made  by  counsel  for  said  plaintiff,  and  the  plaintiff 
having  refused  to  make  answers  to  certain  questions  so  propounded  as  appears 
from  the  minutes  of  such  examination,  and  from  the  affidavit  of  Tracy  H.  Fergu- 
son, submitted  upon  the  motion  herein;  and  the  defendants  having  thereupon 
moved  this  Court  that  the  said  plaintiff.  Joseph  R.  McCarthy  be  directed  to  make 
answer  to  such  questions  ;  and  that  the  further  examination  of  said  plaintiff  before 
trial  be  conducted  before  this  Court  sitting  as  the  Supreme  Court,  and  said  motion 
having  come  on  for  argument  before  the  undersigned  at  a  Special  Term  of  this 
Court  on  May  5th,  1952, 

Now  upon  reading  and  filing  said  NOTICE  OF  MOTION  dated  April  23,  1952, 
together  with  the  affidavit  of  Tracy  H.  Ferguson,  sworn  to  the  23d  day  of  April, 


89 

1*J52  and  annexed  thereto ;  the  summons  and  complaint  of  the  plaintiff  in  said 
action ;  the  answer  of  the  defendants  thereto ;  the  notice  of  motion  dated  Febru- 
ary 11,  VJ'>'2  for  examination  before  trial,  together  with  the  attached  affidavit  of 
Richard  II.  Amberg,  sworn  to  February  11,  lt)52  and  the  exhibits  attached  thereto  ; 
the  order  of  the  Court  dated  March  11,  1952  for  an  examination  before  the  trial 
of  the  plaintiff  and  for  the  production  of  certain  documents ;  the  oath  of  William 
li.  Mangiu,  as  Commissioner  of  Deeds,  sworn  to  March  29,  1952 ;  the  transcript 
of  the  cxiimiuation  before  trial  of  the  plaintiff  held  pursuant  to  the  aforesaid 
order  before  William  B.  Mangin  on  iSaturday,  March  29,  1952;  the  exhibits 
marked  for  identitication  at  the  iiulicaied  points  in  the  aforesaid  transcript, 
and  upon  all  the  papers  and  proceedings  as  referred  to  in  the  said  affidavit  of 
Tracy  11.  Ferguson  aforesaid,  and  after  hearing  Bond,  Schoeneck  &  King  i  Tracy 
11.  Ferguson,  of  counsel)  for  the  defendants  in  support  of  said  motion  and  Mar- 
vin, Hand  &  Bush,  (P.  Sidney  Hand,  of  counsel)  for  the  plaintiff  in  opposition 
to  said  motion  and  after  considering  the  memoranda  of  the  counsel  for  the  re- 
spective parties  and  due  deliberation  having  been  had  and  the  Court  having 
made  its  written  memorandum  of  decision,  it  is 

UKDiiKEu  that  the  motion  of  the  defendant  insofar  as  it  seeks  to  compel  plain- 
tiff to  answer  the  questions  contained  in  the  moving  papers  be  and  the  same 
hereby  is  denied  without  costs ; 

And  counsel  for  the  respective  parties  hereto  having  consented  upon  the  argu- 
ment of  this  motion  that  the  further  examination  of  the  plaintiff  be  held  before  a 
Justice  of  this  Court  sitting  as  a  Court,  it  is  further 

Oruekfi)  that  such  further  examination  of  the  plaintiff  be  held  before  Hon. 
Jesse  E.  Kingsley,  Justice  of  this  Court  sitting  as  a  Court,  and  it  is  further 

Ordered  that  such  further  examination  of  said  plaintiff'  before  trial  shall  pro- 
ceed before  Hon.  Jesse  E.  Kingsley  sitting  as  a  Court  at  Court  House  in  the 
City  of  Syracuse,  Onondaga  County,  New  York,  on  the  23rd  day  of  June,  1952, 
at  10  A.M. 

Jesse  E.  Kingsley, 
Justice  of  Supreme  Court. 

[Hartford  Courant,  June  18,  1952] 

Mb.  Benton's  New  Kind  of  Non-Political  Campaigning 

Connecticut's  junior  Senator,  Mr.  Benton,  has  again  demonstrated  effectively 
that  kind  of  cleverness  that  brought  him  so  much  success  so  quickly  in  the 
advertising  business.  He  has  done  so  by  the  introduction  of  a  completely  new 
gimmick  in  the  held  of  campaigning,  to  wit,  a  major  campaign  device  that  is 
"non-political."  The  value  of  such  a  non-political  campaign  device  is  that  it 
presumably  is  not  considered  by  Mr.  Benton  as  coming  within  the  purview  of 
the  election  laws. 

These  non-political  campaign  devices  are  taking  the  form  of  color  movies, 
travel  pictures  in  which  the  Senator  will  play  the  role  of  commentator.  The 
first  series  of  six  will  be  distributed  professionally  and  will  show  scenes  in 
Italy.  Another  production  under  way,  "A  Day  in  the  Life  of  a  Senator,"  will 
be  shown  in  full  and  excerpts  will  also  be  shown  on  television.  Presumably 
these  productions  will  supplement  the  "Great  American"  .series  on  television  in 
which  Senator  Benton,  also  acting  as  commentator,  touches  lightly  on  the  intel- 
lectual and  spiritual  affinity  between  himself,  Benjamin  Franklin,  John  Quincy 
Adams  and  other  great  Americans. 

The  question  that  immediately  arises  Is  the  fact  that  as  each  candidate  for 
office  is  limited  by  law  in  campaign  expenditures,  can  Mr.  Benton  be  considered 
as  evading  this  law  by  this  device  of  labeling  his  motion  picture  productions  aa 
"non-political?"  Certainly  no  one  but  a  very  wealthy  man  could  indulge  himself 
in  full  length  color  motion  pictures.  And  no  one  but  a  complete  idiot  can  con- 
sider the  motivations  behind  such  productions  as  non-political.  Indeed,  Senator 
Benton  himself  lets  the  cat  out  of  the  bag  when  he  says  he  regards  these  as 
comparable  to  the  "institutional"  advertising  used  by  some  business  concerns. 

The  fact  is,  it  is  advertising,  designed  to  win  friends  and  woo  voters.  Once 
before  Mr.  Benton  interpreted  the  election  laws  loosely  when  he  failed  to  report 
a  gift  of  several  hundred  dollars  given  to  him  by  a  former  member  of  the  Recon- 
struction Finance  Corporation.  When  the  matter  was  suddenly  revealed  at  a 
hearing  Mr.  Benton  said  he  didn't  consider  the  expenditure  political  because  he 
had  used   the  money  to  have  reprints  of  a  speech  printed  and  distributed! 


90 

Shortly  after  that  Mr.  Benton  sought,  without  success,  to  have  the  election  laws 
revamped  In  order  to  avoid  the  hypocrisy  that  inevitably  sprouts  from  the 
present  law. 

It  would  be  a  good  thing  if  this  matter  were  clarified  quickly.  If  Mr.  Benton's 
intepretation  is  correct,  then  any  multi-millionaire  who  is  willing  to  pay  the 
price  can  flood  the  state  with  all  kinds  of  "non-political"  literature,  motion  pic- 
tures and  other  selling  devices.  Of  course,  Mr.  Benton  knows  that  any  gimmick 
that  gets  the  candidate's  name,  voice  and  face  before  the  public  during  a  cam- 
paign is  good  campaigning.  That  is  why  his  "new"  tj'pe  of  campaign  is  nothing 
more  than  an  evnsion  of  the  law  limiting  the  expenditures  of  candidates  to 
oflice.  It  is  a  clever  thing  to  do,  perhaps  too  clever,  but  Mr.  Benton  should  ask 
himself  now  if  it  is  a  wise  thing  to  do,  all  thing  considered. 


Washington  Report 

By  Robert  D.  Byrnes 

The  Hartford  Courant  Washington  Bureau 

Benton  Believes  Film  He  Will  Make 
Opens  Way  For  Neio  Type  Campaign 

WASHINGTON,  June  16. — Sen.  William  Benton,  renominated  Saturday  by  the 
Democratic  State  convention  in  Hartford,  will  go  to  work  this  week  on  one  of  his 
major  campaign  devices,  a  motion  picture  titled  "A  Day  In  the  Life  of  a  Senator." 
The  motion  picture  in  addition  to  being  used  as  a  presentation  in  itself  will  also  be 
the  source,  he  said,  of  one-minute  and  20-secoud  "spots"  which  he  will  use  on 
television  during  his  campaign. 

Benton  believes  the  motion  picture,  especially  when  used  with  television,  opens 
the  way  for  a  new  kind  of  political  campaign,  which  has  the  added  advantage 
of  being  inexpensive  compared  with  other  types.  Benton  has  already  placed 
in  circulation  in  Connecticut  six  films,  four  of  which  are  in  full  color,  on  the 
visits  he  and  Mrs.  Benton  have  made  to  Italy  within  the  past  two  years.  Four 
of  them  are  primarily  scenic,  on  Rome,  Naples,  Venice  and  Italy  as  a  whole. 
The  fifth  is  titled  the  "New  Italy"  and  in  that  one  Benton  is  the  narrator.  It 
includes  material  on  Benton  greeting  sailors  from  Connecticut  at  Naples,  and  a 
press  conference  he  held  in  Rome.     The  sixth  film  is  on  Italy's  children. 

Italy  Films  Not  Political 

The  six  films  of  Italy  are  not  political,  except  they  call  attention  to  Benton. 
Benton  said  they  could  be  compared  with  the  so-called  institutional  advertising 
of  many  firms  which  advertise  to  make  their  name  familiar  to  the  public. 
Benton  has  hired  a  professional  film  distributor  in  Connecticut  to  handle  the 
distribution  of  the  films.  Most  of  the  films  are  put  together  from  standard 
shots  secured  from  Encyclopedia  Britannica  films,  a  business  enterprise  which 
Benton  heads.  The  pictures  of  the  Bentons  in  Italy  have  been  compiled  from 
newsreel  and  other  film  which  Benton  secured  from  various  sources.  A  special 
script  was  written  for  the  films  and  placed  on  a  sound  track. 

Purtell  To  Be  Ahsent  at  Dinner 

William  A.  Purtell,  Republican  nominee  for  the  Senate  seat  now  held  by 
Benton,  will  not  be  able  to  attend  a  dinner  meeting  here  Tuesday  of  Republican 
Senate  candidates.  The  dinner  is  being  given  by  the  Republican  Senatorial 
Campaign  Committee.  Purtell  had  previously  accepted  the  invitation,  but  it  was 
announced  by  the  committee  Monday  word  had  been  received  from  him  that  he 
would  not  be  able  to  attend. 

Miss  Lonergan  in  Political  Debut 

Lucy  Waters  Lonergan,  daughter  of  the  late  Senator  and  Mrs.  Augustine 
Lonergan,  of  Connecticut,  makes  her  debut  as  a  political  candidate  here  Tues- 
day in  the  District  of  Columbia  Democratic  primary.  She  is  a  candidate  for 
delegate  to  the  Democratic  national  convention,  running  on  the  slate  entered  by 
the  district  Democrats  for  W.  Avorell  Harriman  as  the  Democratic  presidential 
nominee.  She  also  has  the  endorsement  of  Americans  for  Democratic  Action, 
Democratic  Central  Committee,  National  Capital  Democratic  Club,  Washington 
Central  Labor  Union,  AFL,  and  Young  Democratic  Committee  for  a  greater 
district  primary. 


91 

Morano  Rctunis  After  Illness 

Uo\).  Albert  P.  Morano,  Republican,  Fourth  District,  returned  to  Washington 
Monday  after  a  week  in  Connecticut,  part  of  it  in  Greenwich  Hospital,  under- 
going treatment  for  a  strained  back.  .Morano  said  he  had  been  warned  by  ids 
doctors  to  "take  it  easy"  for  a  time. 

Kent  PostnKuster  Examination 

The  Civil  Service  Commission  has  announced  July  8  as  the  closing  date  for 
applications  for  the  postmastership  at  Kent.  The  job  pays  $1,770  a  year.  The 
examination  will  be  held  at  Kent. 


Exhibit  No.  29 
[Copy] 


June  20,  19.'32 


Senator  Joe  McCarthy, 

Senate  Office  Building,  Washington,  D.  C. 

My  Deab  Senator  :  I  acknowledge  receipt  by  messenger  of  your  letter  of  June 
19th  in  which  you  advise  that  you  had  been  served  with  a  summons  to  make 
certain  depositions  at  Syracuse,  New  York,  in  the  case  of  McCarthy  vs.  Syracuse 
Post-Standard,  and  that  this  will  preclude  your  being  able  to  attend  the  meeting 
I  have  called  for  the  23rd.  Of  course,  it  will  be  impossible  for  you  to  be  iu 
attendance  here.  I  also  learn  from  your  letter  that  you  do  not  know  how  long 
you  will  have  to  be  in  Syracuse.  We  will  consult  your  couvenience  as  to  the 
fixing  of  another  date  for  hearing  you  on  your  resolution  which  pertains  to 
Senator  Benton. 

I  also  acknowledge  receipt  on  behalf  of  the  Subcommittee  of  the  enclosures 
with  your  letter  in  the  form  of  an  odilorial  and  report  which  appeared  in  a 
Hartford  paper,  and  dealing  with  certain  expenditures  ascribed  to  Senator  Benton 
in  the  production  and  distribution  of  films. 

I  have  called  a  business  meeting  of  the  Subcommittee  for  10  o'clock  A.  M. 
tomorrow,  June  21st,  and  your  letter  with  its  enclosures  will  be  presented  to 
the  Subcommittee  at  that  time. 
Sincerely, 

Gut  M.  Gillette 
GMG :  ec 


Exhibit  No.  30 

United  States  Senate. 
Washington,  D.  0.,  June  2S,  195B 
Senator  Guy  Gillette, 

United  States  Senate,  Washington,  D.  C. 

Dear  Senator:  I  returned  to  Washington  again  this  Monday  morning  so  I 
could  be  on  hand  for  Senator  McCarthy's  projected  appearance  before  your  Com- 
mittee. You  will  recall  my  'phone  conversation  with  you  a  couple  of  weeks 
back  when  I  told  you  how  I  had  changed  my  plans  especially  to  return  to  Wash- 
ington on  Wednesday,  June  11,  so  that  I  might  be  here  for  his  appearance  which 
had  been  scheduled  for  that  day.  He  first  wrote  you  he  could  appear,  then  told 
you  that  he  could  not  after  I  had  changed  my  plans  to  be  here  Wednesday.  You 
then  suggested  Thursday,  the  12th.  He  then  wrote  you  he  could  not  appear  on 
the  12th  "for  the  reason  that  I  am  leaving  tomorrow  to  attend  the  State  Re- 
publican Convention  in  Milwaukee,  Wisconsin".  Yet  you  and  I  both  saw  him 
on  the  floor  on  the  12th,  when  he  said  he  was  to  be  in  Milwaukee. 

You  have  told  me  that  Senator  McCarthy  has  pressed  you  again  and  again 
for  a  date.  You've  been  most  courteous  to  me  in  checking  with  me  on  suggested 
dates  because  I  have  told  you  that  I  want  to  accept  the  invitation  of  your  Com- 
mittee to  be  present  when  he  appears. 

Today  is  the  second  time  we've  definitely  agreed  on  a  date  and  Senator  Mc- 
Carthy has  failed  to  appear.  Several  other  dates  also  have  been  offered  him, 
such  as  last  Wednesday,  June  ISth. 

I  want  these  facts  to  be  clearly  In  the  record.  The.se  dates  and  facts  are 
important  to  me  because  I  have  been  holding  hack  on  my  own  procedures,  under 
Sen;;tor  McCarthy's  suit  against  me,  pending  the  actions  and  developments  before 
your  Tomraittee. 


92 

I  would  be  pleased  if,  when  opportunity  offers,  you  thought  it  suitable  to  give 
this  background  to  the  press.   I  am  often  asked  about  the  matter. 
Very  sincerely  yours, 


mkg 


Bill  Benton 

William  Benton,  V.  S.  Senate. 


Exhibit  No,  31 

June  23,  1952 
Senator  Joe  McCakthy, 

Senate  Office  Building,  Washington,  D.  C. 
My  Dear  Senator  :  This  is  with  further  reference  to  my  communication  to  you 
dated  June  20th  relating  to  the  arranging  of  a  date  for  your  appearance  before 
the  Subcommittee  in  connection  with  your  Senate  Resolution  304. 

At  the  business  meeting  of  the  Subcommittee  held  on  Saturday,  June  21st,  to 
which  I  referred  in  my  letter  to  you  dated  June  20th,  I  submitted  your  letter  of 
June  19th.  The  Subcommittee  has  reaffirmed  the  position  initially  taken  by  it 
that  the  same  procedure  be  followed  in  the  case  of  S.  Res.  304  as  was  pursued  in 
its  consideration  of  S.  Res.  187.  Accordingly,  we  shall  await  the  presentation  by 
you  of  a  statement  in  support  of  your  allegations  before  authorizing  the  com- 
mencement of  an  investigation  by  the  staff. 

With  respect  to  the  statement  contained  in  your  letter  of  June  19th  concerning 
expenditures  allegedly  being  made  by  Senator  Benton  in  Connecticut,  the  Subcom- 
mittee desires  to  Icuow  whether  this  statement  is  to  be  construed  as  an  amendment 
to  your  resolution  or  whetlier  it  is  a  complaint  concerning  Senator  Benton's  cam- 
paign practices  affecting  tlie  seating  of  Senator  Benton  in  the  event  of  his 
re-election  in  November. 

I  will  expect  to  hear  from  you  upon  your  return  from  Syracuse. 
Sincerely, 

Guy  M.  Giu-ette,  Chairman 
JPM :  mky 

Exhibit  No.  32 

[Copy] 

June  24, 1952 
Hon.  Guy  M.  Gillette, 

United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Gillette:  Senator  McCarthy  telephoned  the  office  early  this 
morning  from  Syracuse  and  asked  that  the  following  message  be  relayed  to  you 
in  regard  to  his  olfer  to  appear  before  your  committee  and  testify  on  Senate 
Resolution  304. 

As  you  know,  Senator  McCarthy  presented  the  necessary  leads  on  the  Benton 
case  in  his  resolution.  He  has  advised  you,  however,  tiiat  if  you  wanted  further 
information  on  this  case,  he  would  be  glad  to  come  before  the  committee  and 
present  this  information.  He  has  made  this  offer  periodically,  but  each  time 
the  date  has  been  cancelled  or  postponed  because  Senator  Benton  was  unable 
to  attend. 

The  Senator  feels  that  if  your  committee  is  sincere  in  its  request  that  he 
appear,  the  time  has  come  to  set  a  date  and  inform  Senator  Benton  that  the 
hearing  will  take  place  at  that  time,  whether  he  is  able  to  be  present  or  not. 

With  this  in  mind,  the  Senator  suggests  a  date  be  set  far  enough  in  advance 
so  that  all  concerned  will  have  ample  time  to  arrange  their  schedules  and  so  that 
no  excuse  can  be  made  to  postpone  this  hearing  any  longer.    Senator  McCarthy 
wiU  be  available  for  this  purpose  on  July  3rd. 
Sincerely  yours, 

Maby  B.  Dbiscoll, 
Secretary  to  Senator  McCarthy 
MBD :  mc 


93 

Exhibit  No.  33 

[Copy] 


6-25-52  4  :  30  p.  m. 


GOVERNMENT  OFFICIAL  TELEGRAM  : 
Honorable  Joseph  R.  McCarthy, 

United  States  Senate,  Washington  D.  C. 
Re  your  letter  June  24th,  signed  by  your  secretary,  Mary  Driscoll,  I  have  acted 
on  your  suggestion  and  fixed  July  3rd,  10:  (X)  a.  in.  as  the  time  to  hear  your  testi- 
mony on  your  resolution  #304.     The  place  will  be  Senate  Caucas  Room  and  you 
will  receive  card  confirming  this  in  due  time. 


GMG  :rc 


(Signed)     Guy  M.  Gillette 


Exhibit  No.  34 


United  States  Senate, 
Committee  on  Expenditures  in  the  Executive  Departments, 

July  1,  1952 
Senator  Guy  Gillette, 

Chairman,  Subeommittee  on  Elections  and  Privileges, 
United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Gillette  :  This  is  to  acknowledge  receipt  of  your  wire  to  the 
effect  that  you  desire  that  I  appear  before  your  subcommittee  on  Elections  and 
Privileges  on  July  3,  at  10  A.  M. 

I  understand  you  want  additional  material  to  implement  that  contained  in 
the  resolution  presented  on  Benton.  I  shall  appear  in  accordance  with  your 
request.  However,  I  want  it  definitely  understood  that  I  have  never  requested, 
nor  do  I  now  request,  the  opportunity  of  appearing  before  your  committee  on  the 
Benton  matter.  I  feel  that  your  committee  was  given  ample  leads  in  my  resolu- 
tion if  you  cared  to  conduct  the  same  kind  of  investigation  of  Benton  that  you 
conducted  of  McCarthy. 

I  am  far  too  busy  with  more  important  matters  to  waste  much  time  on  Benton. 
However,  in  view  of  your  request,  I  shall  appear  and  try  to  give  you  such  mate- 
rial on  Benton  as  is  available  to  me  without  making  a  detailed  investigation  of 
his  case.  If  an  investigation  is  to  be  made,  it  will  have  to  be  made  by  your  staff 
as  they  did  in  my  case. 
Sincerely  yours, 

Joe  McCarthy 
Joe  McCarthy 
McC :  d 


Exhibit  No.  35 
[Copy] 

A003  LONG  DL  PD— CLEVELAND  OHIO  8  456A 

1952  Sep  8  AM  7  32 

Senator  Gillette  : 

This  is  to  notify  you  that  for  personal  re.isons  I  must  now  submit  to  your 
committee  my  resignation  as  an  investi;:ator  effective  Sept  6  1952.  As  I  have 
previously  stated,  I  do  not  agree  with  past  restrictions  which  have  been  placed 
on  the  investigation  of  Senator  Benton.  I  do  not  agree  with  the  committees 
failure  to  use  its  investigatory  p<twer  in  pursuing  the  Benton  case  the  com- 
mittee's lack  of  equality  in  dealinji  with  the  two  cases  before  it  is  illustrated  by 
the  fact  that  subix>enas  requested  in  connection  with  the  Benton  case  have 
been  refused — as  is  set  forth  in  a  committee  letter  of  August  7,  lft")2  on  the  other 
hand  unconfirmed  and  alleged  information  has  been  supplied  to  certain  cor- 
respondents for  apparent  political  purpose  of  smearing  Senator  McCarthy. 

Jack  Poorbauqh 


94 
Exhibit  No.  36 


LA*  orriCES 
WEUKCR  &  CAft.EL 


YETTC.IOAMO 


W  CAItf  jy.rtt:.;  Chsinnffn 


^altonal   ^cpubltcan    Scnalortal   (^oiutnillct' 


A  SEN 


Jcpteirfc<-r  7,   1552 


SEKATOft  :ARL  H/'.iDS.l;,   ".hairoan 


ur  .ion£it<;r  :.-i-ji.bT, 


tr;tl  Sleclions, 


■'ill   tho  vac-i-ncv 


,   1-.    .;■  nator,    il&ho 


95 

Exhibit  No.  37 

[Copy] 


September  10,  1952 


Senator  Carl  Hayden, 

Chairman,  Committee  on  Rules  and  Administration, 
United  States  Senate,  Washington,  D.  C. 

My  Dear  Carl:  Doubtless  you  are  seriously  disturbed,  as  I  am,  over  the  recent 
action  of  Senator  Welker  and  Investigator  Poorbaugh.  Both  of  these  resigna- 
tions were  given  to  the  press  before  I  received  them. 

The  situation  that  has  developed  with  reference  to  the  Subcommittee  work, 
seems  to  indicate  a  purpose  on  the  part  of  some  columnists  and  adherents  of 
both  Senator  Benton  and  Senator  McCarthy  to  discredit  the  work  of  the  Sub- 
committee. Recently,  the  efforts  have  been  directed  to  attacks  on  me  personally. 
While,  of  course,  I  can  take  my  share  of  abuse,  I  do  not  want  the  fine  work  that 
the  Subcommittee  has  done,  and  is  doing,  to  be  impeded  or  jeopardized  by  me. 
As  you  know,  I  tried  to  resign  as  Chairman  earlier  last  spring,  but  you  pointed 
out  the  situation  with  reference  to  membership  on  the  Rules  Committee,  which 
made  it  difficult  to  fill  my  place  with  a  new  a.ssignment  from  the  Democratic  side 
of  the  committee.  I  have  definitely  concluded  that  the  best  interests  of  the  Sub- 
committee, and  its  future  work,  would  be  for  a  new  Chairman  to  be  selected  to 
handle  its  work. 

Realizing  the  difficulty,  which  you  presented  before,  of  finding  a  replacement, 
for  me  in  the  membership  of  the  Rules  Committee,  may  I  suggest  that  the  mem- 
bership of  the  Subcommittee  be  again  limited  to  three  members.  You  will  recall, 
that  two  members  were  added,  at  ray  request,  at  the  time  the  Subcommittee  was 
investigating  the  Maryland  case,  and  Senators  Monroney  and  Smith  had  re- 
quested that  in  view  of  the  fact  that  they  were  not  lawyers  that  two  attorneys  be 
assigned.  It  was  for  this  reason  that  the  membership  was  increased  to  five,  and 
a  membership  of  five  has  distinct  disadvantages.  It  is  quite  essential  that  the 
Subcommittee  work  in  harmony  and  its  actions  be  taken  with  unanimous  sup- 
port so  far  as  possible.  This  has  necessitated  trying  to  get  the  five  man  member- 
ship together  or  in  contact  so  that  they  can  present  their  views.  It  has  meant 
postponement  after  postponement  of  action,  as  the  membership  of  the  Sub- 
committee was  scattered,  or  one  member  or  other  absent  from  Washington,  and 
Subcommittee  ses.slons  postponed  awaiting  the  members  return. 

When  the  Subcommittee  member.ship  consisted  of  three  members,  we  had  little 
difficulty  in  this  regard,  and  I  feel  strongly  that  it  should  be  restored  to  this 
number. 

If  Senator  Welker  carries  out  his  announced  intention  and  sends  his  resigna- 
tion to  you,  the  opportunity  is  clear  for  a  return  to  a  three  man  membership. 
My  resignation  would  be  clearly  indicated  and  would  leave  Senators  Hennings, 
Monroney  and  Hendrick.son.  As  you  know,  there  are  no  three  members  of  the 
Senate  who  are  more  capable,  or  more  high  minded,  than  these  men.  They  have 
always  been  scrupulously  fair  in  their  consideration  of  the  difficult  problems  laid 
before  the  Subcommittee.  There  is  no  doubt  in  my  mind  that  it  would  be  in 
the  be.st  interest  of  the  work  of  the  Subcommittee  to  take  the  action  I  have 
suggested. 

I  have  called  a  meeting  of  the  Subcommittee  in  Washington,  the  26th  of  this 
month.  It  would  be  of  .special  advantage  if  this  action  of  reduction  in  member- 
ship, and  the  acceptance  of  my  resignation,  could  be  consummated  in  time  for 
that  meeting.  I  will,  of  course,  be  there  to  bow  out  and  help  in  plans  to  carry 
out  the  work,  so  far  as  I  couid  properly  participate  in  the  plans. 

I  am  sending  a  copy  of  this  letter  to  the  other  members  of  the  Subcommittee, 
and  I  surely  hope  that  you  will  see  the  matter  as  I  do.  I  realize,  of  course, 
that  I  will  be  attacked  severely  for  alleged  "running  out  on  responsibilities"  but 
the  integrity  of  the  election  proce.sses,  and  the  value  of  the  Subcommittee's  work, 
are  far  more  important  than  my  own  feelings  in  the  matter. 

With  warm  personal  greetings,  I  am 
Sincerely, 

Gut  M.  Gillette 


96 

Exhibit  No.  38 

[Copy] 


November  7,  1952 


Hon.  Joseph  R.  McCarthy, 

United  States  Senate,  Washington,  D.  €. 

Dear  Senator  McCarthy:  In  connection  with  the  consideration  by  the  Sub- 
committee on  Privileges  and  Elections  of  Senate  Resolution  No.  187,  introduced 
by  Senator  Benton  on  August  6,  1951,  as  vpell  as  the  ensuing  investigation,  I  have 
been  instructed  by  the  Subcommittee  to  invite  you  to  appear  before  said  Subcom- 
mittee in  executive  session.  Insofar  as  possible,  we  would  like  to  respect  your 
wishes  as  to  the  date  on  which  you  will  appear.  However,  the  Subcommittee 
plans  to  be  available,  for  this  purpose,  during  the  week  beginning  November  17, 
1952. 

It  will  be  appreciated  if  you  will  advise  me  at  as  early  a  date  as  possible  of 
the  day  you  will  appear,  in  order  that  the  Subcommittee  may  arrange  its  plans 
accordingly. 

Very  truly  yours, 

Paul  J.  Cottee,  Chief  Counsel 
P JC :  mlv 


Exhibit  No.  39 

November  7,  1952 
Hon.  William  Benton 

United  States  Senate,  Washington,  D.  C. 
Dear  Senator  Benton  :  In  connection  with  the  consideration  by  the  Sub- 
committee on  Privileges  and  Elections  of  Senate  Resolution  304,  introduced  by 
Senator  McCarthy  on  April  10,  19.52,  as  well  as  the  ensuing  investigation,  I  have 
been  instructed  by  the  Subcommittee  to  invite  you  to  appear  before  said  Sub- 
committee in  executive  session.  Insofar  as  possible,  we  would  like  to  respect 
your  wishes  as  to  the  date  on  which  you  will  appear.  However,  the  Subcom- 
mittee plans  to  be  available,  for  this  purpose,  during  the  week  beginning 
November  17,  1952. 

It  will  be  appreciated  if  you  will  advise  me,  at  as  early  a  date  as  possible,  of 
the  day  you  will  appear,  in  order  that  the  Subcommittee  may  arrange  its  plans 
accordingly. 

Very  truly  yours, 

Paul  J.  Cotter,  Chief  Counsel 
PJC:  mlv 


97 

Exhibit  No.  40 


'llCniied  ^U^(««  ,S>€tuxU 

COWMITTT*  OM  *l  I  HMI  HIATIW 

Hoveaber  10,  1952 


Vr,  i-aij.  ,,'.  Cottar 

Cblof  Counsel 

5ut«oix-itt<.>e  on  rrivilogea  and  ilectloM 

tiV.I'^ed  Stfttas  oAnate 

'.  ashlartcn,  0.   C. 

T.otLT  !-!r.  Cotton 

Ir^asBUcii  as  Senator  McCarthy  is  not  now 
in  o'ash in,: Ion,  I  ac  taMn;  the  liberty  of  acknowl- 
edglng  receipt  of  your  letter  of  NoveDber  7. 

I  have  just  talked  to  the  Senator  over 
tt>e  telephcne  and  he  does  not  Vsow  just  when  he  will 
return  to  ««st.ln>-ton.      It  presently  appe/js  t;.at  he 
will   not  be  avalJatla  tn  f>j;;-<i»r  htfnrn  j"  T  corrilttee 
a-jrir^t;  tho  tine  yo-i  npjrClon,     However,   hc^mid  state 
trjkt  if  y -u  ifii;  l^t  bl".  know  juat  wha*.   in:"o^ 
you  dssira,  he  wl^  be  glad  to  try  to  l«   jf 
you. 


P-Vdl 


Ray  KierruiA 
AdliiiJ.;itrative  ,.s3is 
Senator  I-.cCarthJ 


Exhibit  No.  40A 


^'Cnilcd  -Sia(«s  ^e^xdU 


Kr.  Paul  J.  Cotter 

Chief  Coxoisel 

Subcoorittee  on  PrivlleL'«»  '^-'W*  Electims 

United  States  Jooatc 

V.ashingtoii,  D.  C. 


98 

Exhibit  No.  41 

November  21,  19r)2 
Hon.  Joseph  R.  McCabthy, 

Room  254,  Senate  Ofliee  Building,  Washington  2,7,  D.  C. 
Dear  Senator  McCarthy:  As  you  will  recall,  on  September  25,  1951,  May  7, 
1952,  and  May  10,  1952,  this  Subconiraittee  invited  you  to  appear  before  it  to  give 
testimony  relating  to  the  investigation  pursuant  to  S.  Res.  1S7. 

Under  date  of  November  7,  1952,  the  following  communication  was  addressed 
to  you : 

"Dear  Senator  McCarthy  :  In  connection  with  the  consideration  by  the  Sub- 
committee on  Privileges  and  Elections  of  Senate  Resolution  No.  187,  introduced 
by  Senator  Benton  on  August  6,  1951,  as  well  as  the  ensuing  investigation,  I  have 
been  instructed  by  the  Subcommittee  to  invite  you  to  appear  before  said  Subcom- 
mittee in  executive  session.  In.sofar  as  possible,  we  would  like  to  respect  your 
wishes  as  to  the  date  on  which  you  will  appear.  However,  the  Subcommittee 
plans  to  be  available,  for  this  purpose,  during  the  week  beginning  November 
17, 1952. 

"It  will  be  appreciated  if  you  will  advise  me  at  as  early  a  date  as  possible  of 
the  day  you  will  appear,  in  order  that  the  Subcommittee  may  arrange  its  plans 
accordingly. 

"Very  truly  yours, 

/s/    Paul  J.  Cotter 
Paul  J.  Cotter 

Chief  Counsel" 

On  November  14, 1952,  the  Subcommittee  received  the  following  communication, 
dated  November  10, 1952  : 

•'Dear  Mr.  Cotter  : 

"Inasmuch  as  Senator  McCarthy  is  not  now  in  Washington,  I  am  taking  the 
liberty  of  acknowledging  receipt  of  your  letter  of  November  7. 

"I  have  just  talked  to  the  Senator  over  the  telephone  and  he  does  not  know  just 
when  he  will  return  to  Washington.  It  presently  appears  that  he  will  not  be 
available  to  appear  before  your  committee  during  the  time  you  mention.  How- 
ever, he  did  state  that  if  you  will  let  him  know  just  what  information  you  desire, 
he  will  be  glad  to  try  to  be  of  help  to  you. 
"Sincerely  yours, 

/s/    Ray  Kiermas 
Ray  Kiermas, 
Administrative  Assistant  to  Senator  McCarthy" 

The  Subcommittee  is  grateful  for  your  offer  of  assistance,  and  we  want  to 
afford  you  with  every  opportunity  to  offer  your  explanations  with  reference  to 
the  issues  involved.  Therefore,  although  the  Subcommittee  did  make  itself 
available  during  the  past  week  in  order  to  afford  you  an  opportunity  to  be  heard, 
we  shall  be  at  your  disposal  commencing  Saturday,  November  22  through,  but 
not  later  than.  Tuesday.  November  25, 1952. 

Thi.s  Subcommittee  has  but  one  object,  and  that  is  to  reach  an  impartial  and 

proper  conclusion  based  upon  the  facts.    Your  appearance,  in  person,  before  the 

Subcommittee  will  not  only  give  you  the  opportunity  to  testify  as  to  any  issues 

f.f  i'-^r-t  which  may  be  in  contf<)V(-!-sv  hut  win  f.  '  -  .■ri^r<^er,t  assistance  r-i  fhf 

nittee  in  its  effc*  and  to  et 


99 

(3)  Whether  your  activities  on  behalf  of  certain  special  interest  proups,  such 
as  housing,  su^ar  and  China,  were  motivated  by  self-interest. 

(4)  Whether  your  activities  with  respect  to  your  senatorial  conipaigns,  par- 
ticularly with  resfject  to  the  reiK)rting  of  your  tinancinu  and  your  activities 
relating  to  the  tinamial  transaitions  with,  and  subsequetit  employment  of,  Ray 
Kiermas  involved  violations  of  the  Federal  and  State  Corrupt  I'ractlces  Acts. 

(."))  Whether  loan  or  other  transactions  which  you  had  with  the  Appleton  State 
Hank,  of  Appleton,  Wisconsin,  involved  violations  of  tax  and  banking  laws. 

(6)  Whether  you  used  close  associates  and  members  of  your  family  to  secrete 
receipts,  income,  commodity  and  stock  speculation,  and  other  IJnancial  transactions 
for  ulterior  motives. 

We  again  assure  you  of  our  desire  to  give  you  the  opportunity  to  testify,  in 
executive  session  of  the  Subcommittee,  as  to  the  foregoing  matters.  The  82nd 
Congress  expires  in  the  immediate  future  and  the  Subcommittee  must  necessarily 
proceed  with  dispatch  in  making  its  report  to  this  Congress.  To  that  end,  we 
respectfully  urge  you  to  arrange  to  come  before  us  on  or  before  November  2.")th,  and 
thus  enable  us  to  do  our  con.scientious  best  in  the  interests  of  the  Senate  and  our 
obligation  to  complete  our  work.  We  would  thank  you  to  advise  us  immediately, 
so  that  we  may  plan  accordingly. 

This  letter  is  being  transmitted  at  the  direction  and  with  the  full  ccmcurrence 
of  the  membership  of  this  Subcommittee. 
Sincerely  yours, 

Thomas  C.  Hennings,  Jr.,  Chairman 
P.TC :  mlv 


Exhibit  No.  42 
Western  Union 
Charge  to  the  account  of  Senate  Subcommittee  on  Privileges  and  Elections. 
(Note. — Western  Union — Please  send  the  following  wire  to  these  addresses:) 

Senator  Joseph  R.  McCarthy  (Official), 

Room  254,  Senate  Ofpee  liuilding,  Washincrton,  D.  C. 
Senator  Joseph  H.  McCarthy   (Official), 

Appleton,    Wiavon-iiin. 
Senator  Joseph  R.  McCarthy  (Official), 

Hotel  Desert  Hills,  Phoenix,  Arizona. 
Reference  is  made  to  our  letter  of  November  7  again  inviting  you  to  appear 
before  this  subcommittee  and  to  the  reply  of  your  administrative  assistant 
received  today.  You  are  advised  that  this  committee  does  not  consider  the 
aforementioned  letter  of  your  assistant  to  be  an  adequate  or  satisfactory  answer. 
This  committee  desires  an  opportunity  to  examine  you  under  oath  to  clarify  if 
possible  certain  questions  that  have  been  raised  from  facts  at  hand,  particularly 
with  re.spect  to  your  intricate  financial  tran.sactlons  and  certain  of  your  activi- 
ties. Your  continued  refusal  to  cooperate  with  the  committee  in  its  efforts 
to  carry  out  the  instructions  of  the  United  States  Senate  would  appear  to  prevent 
a  conscious  disregard  by  you  for  the  Senate's  authority  and  a  desire  to  prevent 
a  disclosure  of  the  facts.  Failure  to  receive  a  reply  by  return  wire  that  you  will 
appear  before  this  committee  in  executive  ses.sion  no  later  than  November  20  can 
nly  be  construed  as  a  final  refiL-sial  in  testify  under  oath  before  this  comniittee. 


100 

Exhibit  No.  43 

[Copy] 


November  21,  1952 


Hon.  William  Benton, 

S5i  Senate  Office  Bldg.,  Washington,  D.  C. 

Dear  Senator  Benton  :  Reference  is  made  to  the  letter  of  November  7,  1952. 
inviting  you  to  appear  before  this  Subcommittee  in  connection  with  its  consid- 
eration of  Senate  Resolution  304,  introduced  by  Senator  McCarthy  on  April  10. 
1952,  as  well  as  the  ensuing  investigation. 

We  appreciate  your  communication  that  you  would  be  available  for  examina- 
tion at  any  time  designated  upon  giving  due  notice  and  you  are  advised  that  the 
Subcommittee  will  make  itself  available  for  hearing  your  testimony  in  executive 
.session  at  any  time  commencing  with  Saturday,  November  22,  but  not  later  than 
Tuesday,  November  25th. 

The  matters  that  will  be  taken  into  consideration  are  those  referred  to  in 
the  McCarthy  Resolution  which  may  be  deemed  pertinent  together  with  the  facts 
developed  by  subsequent  investigation,  particularly  those  relating  to  the  circum- 
stances surrounding  the  Cosgriff  contribution. 

Plea.se  advise  promptly  of  the  date  you  will  appear. 

This  action  is  being  taken  at  the  direction  and  with   the  full   concurrence 
of  the  Subconimittee  members. 
Sincerely  yours, 

Thomas  C.  Hexnings,  Jr.,  Chainnuu 
PJC :  mky 


101 

Exhibit  No.  44 

'^Cnitci)  ^lctle»  ^eualt 


.November  23,  175^ 


S«nator  Tiionas  C.  "iennincs,  Jr. 

SubiaTcdttee  on  Privileges  and  Elections 
Sencte  Office  Bulidlnij 
VaRiiiiv^n,  D.  C. 

Detr  Senutor  Hemnings: 

I  just  received  7>ur  i.lre  t,l"  Hovcraber  i2  in 
vhlch  you  state  /ou  wouiii  xx^o  to  have  ae  ap;etr  before 
your  ooQ-iittee  octveen  fiovaobcr  22  £nd  25. 

Ac  you  woj-t  informed  bj  ay  office  prior  to  the 
time  you  sent  thip  vrlre,   I  ve.s  net  axpacted  to  return  to 
Vashinpton  until  T'lursdc.y,  November  27,   on  -hich  Auto  I 
■ild  rolum. 


JOE  McCA-TTH?  •,  \ 


'TttrxHeb  S>la.le»  ^nutU 


rncs 


y  u.s.s.\J 


111-.!,   „r, 
.  trlvilegea 


anrdn«ton,  0.  C. 


102 
Exhibit  No.  45 


^CniieZl  ^ia(«s  ^enaU 

D«OMib*r  1,  1952 


Sanntor  Thoais  C.  Haonlngs,  Jr. 
Chalman,  Subeoanlttae  on 

PriTllages  ajid  Elaetioaa 
Sanat*  Ofrica  BulUinc 


Daar  Mr.  Heonincai 


Thia  ia  to  aeknovladge  raoalpt  of  roura  of  Nortabar 
21  In  which  70U  atata  that  jrour  objaet  ia  to  raaeh  as 
"lopartial  and  propar  eoneluaion  baaad  upon  the  facta* 
In  the  Bantos  applla«tioB  whloh  aaka  for  mj  raaoval  trcm 
th«  Seoata. 

I  waa  Intaraatad  In  jour  daclaratioo  of  booaaty  of 
tha  Coaaittaa  and  would  lUca  to  balian  that  it  la  trua.  Aa 
you  know,  your  Coadttaa  baa  tha  Boat  unuaual  record  of  any 
eoBtlttaa  in  tha  history  of  tha  Sanata.  Aa  you  know  two  Beabara 
of  your  ataff  have  raalgnad  and  aada  tha  public  atataaent  that 
thalr  raason  for  reaignatlon  waa  that  your  Coatlttaa  w«t  dl»- 
hcnaatly  usad  for  political  purpoaaa.  Two  Sanatora  hara  alao 
raalgnad.  Cna,  Senator  Walker  In  tha  atrongeet  poesible  languag* 
Indicted  your  Coaoilttae  for  eoa^leta  dlahonasty  in  handling  yotir 
Inragtlgation.  Senator  ClUatta  alao  raalgnad  without  girlnf 
any  plaualble  raaaon  for  hla  realgnatlon  froa  the  Coaidttea. 
Obvloualy,  he  also  couldn't  stoaacfa  tha  diahonost  uea  of  public 
funda  for  political  purpoaaa.  For  that  r«aaon  it  is  diffioult 
for  ma   to  ballaT*  your  protaatationa  of  tha  honeaty  of  your  Co»' 
■Ittaa. 

1  would,  therefore,  ordinarily  not  dignify  your  Coaalttae 
by  answering  your  letter  of  No»e»ber  21.  Bowever,  I  decided  to 
fire  you  no  txevam   to  clal»  In  your  report  that  I  refused  to  glTe  yon 
any  facta.  For  that  reaeoa  you  are  being  Inforaed  that  tha  anawar  to 
the  alx  lna\ating  quaationa  In  your  latter  of  KoreBber  21  la  "So". 


103 


Ton  und*rit«jul  tiiat  in  mmmring  thaaa  qxMstlons  I  do  act  la 
tixf  WKjr  appro^  of  nor  adalt  tb*   fal««  tt«tf  »nt«  tai  ionuaodo*! 
■■da  !■  tha  quaatlooJ. 

I   no^a  with  (oaa  Intaraat  tout  rvfaranoa  to  mj  'aotlTltlaa 
on  batuir  of  o«rt«lo  apeciaj  Intaraat  grqupa,   auch  a«  boualag,   luftr 
and  China.'        I   aa«\r-a  70U  rafar  to  07  drkjTtlBc  of  tha  oo^jrabanalv* 
HoualDf  let  of  19^8  which  waa  paaaad  without  a  Aogla  dlaaantlog  Tot« 
in  tha  Saoata,   alther  Camocrat  or  RapnbUcaio.     Nalthar  70U  nor  anjr 
othar  Saoator  hut  attanptad  to  rcpaal  aojr  part  of  that  Boualng  Act. 
Or  parhapa  jm  rafar  to  tha  alua  claaranoa  bill  which  I  draftad  and 
Introduced  la  1916,  Wilefa  alua  claaranca  bill  was  adoptad  la  toto  bj 
tha  Daaocrat-eontrolJad  S«a  ta  In  1949. 

Uhan  70U  rafar  to  sucar  I  aasvna  jroo  rafar  to  ay  afforta 
to  do  away  with  your  tart^'a  ratloolog  of  sugar,   aa  I  proalaad  tha 
houaawlTaa  that  I  would  duriag  ■/  19'Ct>  canpalfD.     If  that  w»re  wn^'Og, 
I  wcndar  why  you  hava  not  lotrodOo*d  laglslation  In  tha  Daaocret- 
oontroUod  Sonata  to  raat«r«  augar  ratlonlag.     You  hava  had  twc  yaara 
to  do  ao« 

I  thought  perhapa  tha  alaotlon  alght  bava  tau^t  you  that 
your  boaa  and  ■loa  -  tha  Aaerieain  paopla  -  do  not  approva  of  traaaon 
asd  lQcoa(>at«nc«  and  faal  that  It  Buat  b«  axpoaad. 

Tou  rafar  to  tha  abow  c«  "spacial  Intaraate.'     I  paraonally 
f»«l  var^'  proud  of  harlng  draftad  tha  Houalng  Act  In  19iA  which  paaa«d 
tha  Congrasa  without  a  aingla  dlaaantlne  Tota  -  a  Housing  Act  wMeh 
eontributad  ao  ouch  towards  aaklcg  it  possibla  for  ratarana  and  all 
Aserlcana  In  tha  alddla  and  low-incoaaa  gruups  to  own  their  own  hoaaa. 
Likewl  ■«,   I   ar,  proua  of  haying  haen  able  to  fulfill  »y  proaiae   tc 
Aserlcan  bouaawlTss  tc-  obtain  tha  derationing  of  sugar.     I  prorad  at 
the   tlaa  that  ratl:ialr»;  was  not  for  the  bai«fit   of  the  housewlTas  but 
for  the  coawrelal  uaars. 

I   llkawisa  aa  doubly  proud  of  tha  part  I   playad  in  alerting 
tha  iaarlcan  peo-.le  to  your  Adalnistration's   traitorous  betrayal  of 
Aaerlean  interests  throughout  the  world,  eapaclally  in  China  and 
PoUnd. 

lou  refer  to  aueh  actlTitlae  on  mj  part  aa  "actiTitlas  for 
special  ioteresta.*  I  an  ourioua  to  know  what  'special  interests' 
you  near,  other  than  the  srecial  interest  of  the  Aaarlcaji  people. 


104 


Thla  letUr  la  not  vritUn  with  maj  hop*  ot  cattlHF 
■a  hoiMat  raport  fro*  your  Co^ilttaa.     It  la  bala(  wrlttan 
■Brely  to  kaip  tha  raoord  atralght. 


JNstag 


J^'^iiZcJZ^ 


JCi  KeCARTHT 


^'Cniieb  ^late»  JSyenale 

COMMITTftC  OM  *f  rnO»WIAT(OM« 
FNEC 


/a. 


Senator  Thoaaa  C.  Hannlncs,  Jr. 

Chalraan,  Sobccomlttaa  on  FrlTllaiaa  k  ClacUona 

Sanata  Offlea  Building 


105 

Exhibit  No.  46 

[■Copy] 

OcTOBKK  r>,    llKil 

The  Honorable  Gut  M.  GiLunTE, 

Chairman,  Subcommittee  on  I'rii'ileijes  and  Elections, 
United  Staiea  Senate,  Waishinfltan,  D.  C. 

Dear  Mr.  Ch.xirman  :  I  hereby  tile  with  you  as  Chairman  of  the  Senate  Sub- 
committee on  Privileges  and  Elections  this  written  reijuest  conceriiinK  the  further 
consideration  by  your  committee  of  Senate  ResohUion  187  which  I  submitted 
to  the  United  States  Senate  on  August  (3,  19r>l,  calling  for  an  investigation  with 
respect  to  the  participation  of  Senator  Joseph  K.  McCarthy  in  the  VXA)  .senatorial 
campaign  of  Senator  John  JI.  Butler,  and  with  respect  to  his  other  acts  since 
his  election  to  the  Senate. 

This  resolution  was  submitted  for  the  purpose  of  enabling  your  subcommittee 
to  determine  whether  or  not  it  should  initiate  action  with  a  view  toward  the 
expulsion  of  Senator  McCarthy  from  the  United  States  Senate. 

On  September  128,  l!)ol,  I  had  the  honor  of  presenting  before  your  subcommittee 
a  59-page  statement,  listing  ten  case  stories  to  show  that  the  activities  of 
Senator  McCarthy  merit  scrutiny  and  investigation  as  reflecting  uinm  the  honor 
of  the  United  States  Senate,  and  upon  Senator  McCarthy's  own  fitness.  At  that 
time  I  indicated  that  although  I  had  limited  my  testimony  to  Senator  McCarthy's 
activities  after  his  election  as  a  Senator,  there  was  nmch  public  evidence 
available  that  would  illustrate  the  pattern  of  his  conduct  to  be  a  continuous 
series  of  events  beginning  prior  to  his  entrance  into  the  Senate. 

After  careful  reconsideration  of  the  critical  issues  involved  herein,  it  is  my 
opinion,  that  if  your  decision  is  to  go  forward  with  the  consideration  of  this 
resolution,  the  investigation  should,  in  all  fairness  to  both  Senator  McCarthy 
and  the  United  States  Senate,  be  as  comprehensive  and  exhaustive  as  possible. 

There  are  many  facets  of  Senator  M^-Carthy's  public  and  business  activities 
prior  to  his  election  as  United  States  Senator  which  I  believe  are  clearly  relevant 
to  a  true  evaluation  of  his  fitness  to  sit  in  the  United  States  Senate. 

Specifically,  Senator  McCarthy's  activities  as  a  judge  in  the  Wisconsin  state 
court,  particularly  his  involvement  in  the  "Quaker  Dairy  Case",  State  versus 
McCarthy,  in  1941  :  in  the  alleged  violations  by  him  of  the  Wisconsin  state 
Constitution  in  1946;  in  the  charges  that  his  court  specialized  in  "divorce-mill" 
actions ;  in  the  contradictory  stock  transactions  and  state  income  tax  reports 
in  1943.  I  wish  to  make  it  perfectly  clear  that  these  charges  are  not  a  result 
of  any  personal  investigation  by  me  or  my  staff,  but  represent  some  of  the  most 
publicized  and  well-known  of  the  many  charges  that  are  matters  of  record, 
levelled  against  Senator  McCarthy  which  would  seem  to  bear  relevant  reflection 
upon  his  fitness  and  htmor  and  should  he  included  in  any  consideration  of  the 
resolution  now  before  the  Subconnnittee  on  Privileges  and  Elections. 

Since  time  is  of  the  essence,  I  am  confident  that,  in  view  of  the  outstanding 
reputation  of  you  and  the  members  of  your  committee  for  justice,  integrity  and 
fair  play,  you  will  accept  this  request  in  the  spirit  in  which  it  is  submitted — 
to  assure  that  all  material  facts  are  considered  in  any  investigation  which  you 
de<*ide  to  initiate. 

Therefore,  I  have  the  honor  to  request  that  the  scope  of  the  investigation 
as  resolved  in  Senate  Resolution  187,  be  broadened  to  permit  examination  of 
the  activities  of  Senator  Jo-seph  R.  McCarthy  prior  to  his  elei'tion  to  the  United 
States  Senate,  starting  in  the  year  1941,  provided  such  investigation  be  con- 
fined to  his  public  and  business  activities  and  only  those  that  would  shed  light 
on  his  overall  and  specific  fitness  to  retain  the  great  ofilce  which  he  now  holds. 
Very  respectfully  yours, 

/s/    William  Benton 

U.  S.  Senate 
rakg 


106 

Exhibit  No.  47 

[Copy] 

[Press  release] 

Washington,  D.  C,  December  27, 1951 
Release  Time  :  5  P.  M.,  EST 
By :  Daniel  G.  Buckley,  New  York  lawyer,  former  Assistant  Counsel  to  the 

Senate  Subcommittee  on  Privileges  and  Elections  Investigating  Senator  Ben- 
ton's charges  against  Senator  McCarthy. 

At  the  time  I  was  appointed  Assistant  Counsel  to  the  Gillette  Committee  I  be- 
lieved my  sole  task  was  to  seek  the  truth  relating  to  the  charges  leveled  by 
Senator  Benton  against  Senator  McCarthy. 

It  was  not  long,  however,  before  I  discovered  that  as  a  staff  member  of  the 
committee  I  was  expected  to  substantiate  Senator  Benton's  charges  and  to  dis- 
credit McCarthy  at  the  expense  of  the  truth. 

Because  of  this  I  feel  compelled  to  speak  out  and  tell  the  American  people 
the  facts  concerning  the  investigation  which  is  now  in  progress. 

My  first  job  for  the  committee  was  to  go  into  the  "Wheeling,  West  Virginia, 
speech  which  was  Senator  McCarthy's  opening  public  statement  in  his  campaign 
against  Communist  subversion  in  the  State  Department.  Senator  Benton,  In 
connection  with  this  speech,  charged  that  Senator  McCarthy  "lied  under  oath" 
and  that  he  had  deliberately  deceived  the  Senate  regarding  the  content  of  this 
speech. 

My  job  in  Wheeling,  I  thought,  was  to  find  the  facts — to  find  whether,  as 
Senator  Benton  charged.  Senator  McCarthy  had  said  that  he  had  a  list  of  205 
Communists  in  the  State  Department,  or  whether,  as  Senator  McCarthy  main- 
tained, he  had  said  he  had  a  list  of  57  Individuals  either  members  of  or  loyal 
to  the  Communist  Party. 

While  In  Wheeling,  I  conscientiously  interviewed  a  large  number  of  witnesses 
who  were  in  a  position  to  know  what  Senator  McCarthy  had  actually  said. 
Everyone  of  these  witnesses,  save  one,  supplied  information  which  cast  grave 
doubt  and  suspicion  on  Senator  Benton's  story  and  substantially  corroborated 
Senator  McCarthy's  account  of  the  facts. 

Upon  my  return  to  the  Capitol  I  prepared  and  submitted  an  accurate  report  of 
the  facts  as  I  found  them — a  task  which  I  naturally  assumed  was  expected  of  me. 

Shortly  thereafter  Senator  Tydings,  who  through  some  unexplained  device 
learned  that  I  had  handled  the  investigation  in  Wheeling,  asked  me  during  a 
telephone  conversation  what  I  had  discovered.  When  I  answered  that  the  facts 
indicated  that  the  Benton  version  of  the  57-205  controversy  would  not  hold  water 
and  was  falling  apart  at  the  seams.  Senator  Tydings  became  highly  indignant  and 
Irritated. 

I  soon  found  myself  on  my  way  back  to  Wheeling — this  time  accompanied  by 
our  chief  investigator  for  the  unusual  purpose  of  double-checking  on  my  original 
report. 

Immediately  after  arriving  in  Wheeling  for  the  second  time,  I  was  shocked  to 
discover  that  the  chief  investigator  appeared  to  be  more  interested  in  trying  to  dig 
up  material  detrimental  to  Senator  McCarthy  than  in  arriving  at  the  facts  regard- 
less of  who  they  helped  or  hurt. 

In  one  case,  for  example,  he  went  so  far  as  to  prepare  a  suggested  outline  for  a 
sworn  statement  for  the  lone  anti-McCarthy  witness  to  follow.  E)ven  this  sole 
anti-McCarthy  witness  did  not  use  the  outline  but  prepared  Instead  an  innocuous 
statement. 

After  this  and  several  other  such  incidents  it  became  increasingly  apparent 
to  me  that  the  chief  investigator  was  following  a  predetermined  pattern  of 
prejudice  directed  against  Senator  McCarthy. 

When  I  insisted  that  we  seek  only  the  fact.s,  the  chief  investigator  became 
infuriated  and  at  one  point  stormed  at  me,  charging,  "I  cannot  control  you", 


107 

and  "We  are  travelling  along  different  roads" — which,  incidentally,  were  com- 
pletely true  statements. 

Despite  such  tactics  as  this.  I  continued  to  bring  the  facts  to  light  and  tried 
whenever  I  had  an  opportunity  to  counteract  attempts  to  slant  or  cover  up  the 
facts.  The  Information  I  developed  on  the  second  Wheeling  trip  did  more  than 
merely  cast  grave  doubt  and  suspicion  on  Senator  Benton's  story.  The  newly 
unearthed  evidence  demolished  Senator  Benton's  charge  In  all  material  respects 
and  thoroughly  proved  Senator  McCarthy's  account  of  the  facts  to  be  truthful. 

Following  this  experience  in  Wheeling,  I  was  never  again  assigned  to  any 
task  of  consequence  concerning  the  Benton  charges  but  was  transferred  to  the 
Taft-Ferguson  hearings,  only  to  be  summarily  dismissed  a  short  time  later. 

While  serving  with  the  committee  I  was  not  at  all  surprised  to  find  that  Senator 
McCarthy's  arch  enemy.  Drew  Pearson,  was  supplying  the  committee  with  ma- 
terial. I  was  startled,  however,  to  learn  that  Pearson  had  access  to  and  made 
public  a  confidential  report  which  had  been  given  to  only  four  Senators. 

I  was  told  that  when  it  was  suggested  to  Senator  Margaret  Chase  Smith  that 
we  should  find  out  from  what  source  Pearson  obtained  this  confidential  report, 
her  answer  was,  in  substance,  that  we  should  forget  about  It. 

I  have  no  Interest  in  Senator  McCarthy  as  a  person,  but  after  I  had  an  op- 
portunity  to  investigate  the  Benton  charges  against  Senator  McCarthy,  I  came 
to  the  conclusion  that  Benton's  case  is  without  foundation  and  politically 
motivated. 

It  is  quite  clear  to  me,  because  of  my  intimate  experience  with  the  committee, 
that  the  Benton  investigation  is  part  and  parcel  of  an  insidious  campaign  which 
had  two  major  aims:  (1)  to  discredit  and  destroy  any  man  who  fights  Com- 
munist subversion— in  this  case.  Senator  McCarthy;  and  (2)  to  instill  fear  in 
the  minds  of  men — a  fear  which  our  enemies  hope  will  effectively  scare  loyal 
Americans,  in  private  life  and  in  the  Congress,  into  silence  and  prevent  them 
from  speaking  out  against  the  Communist  threat  to  this  country. 

Wh'le  I  realize  full  well  that  this  statement  which  I  am  making  will  end  any 
chances  I  have  for  work  either  in  the  government  or  in  the  Congress,  I  feel 
compelled  to  speak  out  and  tell  the  truth  as  I  found  it  to  the  American  people 
who  paid  my  salary. 

Finish 


108 


Exhibit  No.  47A 


Talspbone  Colla  Mad*  fron  HoclcTllla  Centr*i 

Kew  Tork,  6-5UU2 

Sub8orlb«rt     Dailel  Q.  Bueklar 

2U3  N.  Centre  An., 

BoclcTlU*  Ctntrs,  L.  I.,  M.  T. 


s«t« 

TlM 

NuBber  and 
Parson  Callad 

Eaaarfca 

12/20/51  - 

Jj«25  P.  K. 
3  Nina. 

Nitlonal  3120 
Station  to  Station 

Subscrlbar  -  U.  S.  Capitol 

12/27/51 

liiU  P.  M. 
3  ttta«. 

HEt.  0233  Vaafalngtan, 
B.  C. 

Sobaoriber:  Fulton  L*vla,Jr 
Barr  MUldlng,  Washlnt.'ton, 
D.   C. 

12/27/51 

7«i>0  P.  M. 
11  »lna. 

HO  501^  -  tfaahlngton, 
0.  C. 

SubBcrlbar  •>  Jaaa  Earr, 
3032  21ith  St.,  M.  1. 

12/27/51 

10f33  P.  «. 
It  Mlns. 

■       ■              ■ 

, 

12/30/51 

U>56  1.  M. 
8  Mins. 

HD  5(Ui6  -  WaahlDgton, 
D.  C. 

Subacribar  -  Jean  S»rr, 
3032  2i»th  St.,  S.  B. 

12/3V51 

8t30  P.  K, 

3  mns. 

HO  50U6  -  Haahineton, 
D.  B. 

Subscriber  •  Jean  KexT, 
3032  2Uth  St.,  K.  I. 

1/2/52 

3«50  PJ*.. 
3  Nina. 

National  3120 
SUtlon  to  Station 

Subacribar  -  U.  S.  Capitol 

1-3-52 

Ii36  P.H. 

JNlM. 

HaUonal  3120 
Statloa  to  Station  ^ 

aabMTlbar  -  D.S.  C«ltol 

Talqiban*  Calla  Made  Froa  HO  50tt6,  Haahlngtan,  D.C. 
Sobaerlbari  N»8.  Kllaabctb  r.  Kerr  and 
Miaa  Jean  F.  Karr 
'  3032  21(th  Street,  ».  B. 
Maahlngton,  B.  C. 


12/27/51 

12/28/51 

12/28/51 

U/51/51 

V8/» 

l/j/52 

J/lS/52 


3i06  P.M. 
3  Hlna. 


12 1 35  A.M. 
10  Kins. 


7»35  PJ^. 
3  Nina. 


91O3  ?M. 
6  Nina. 


lliOli  PM. 
3  Mlna. 


Ui27  PJ(. 
it  Hlna. 


8t26  P.N. 
5  Nina. 


Huaber  aid 
Faraon  CJled 

TVtt  8-500  -  Dan 

Buclcl«gr  c/o 
iaerican  iirllnaa 


Baaarka 

Call  aada  by  Nlaa  Kerr  froa 
Senator  HcCarthjr'a  office. 
Senate  Office  Buildlnc,   and 
billed  to  H)  SOiiS. 


liooJcTllle  Centre, 
N.  r.,  6-5U»2 
(Daniel  Bucklagr) 

Boelnrllle  Centra,    b-5UU2 
H.  T.  (Daniel  0.    .« 
Buckler) 

RockTille  Centra, 

N.  I.     6-5Ut2  (Denial 

0.  Bttcklar) 

Sockrillo  Centre,     Call  aada  by  Hlaa  Kerr  at 
N.  r.,  6-5Ut2  (Daniel  U  lt-d901,  Waahlncton,  D.C. 
a.   Ducklar)  and  billed  to  H)  501^ 

aockrllle  Centre, 

a.  T.,  6-5Ui2  (Dwilel 

0.  Boeklejr) 


Oardan  City,  M.I. 
7-9853  (Dan  Bucklajr) 


CaU  flrat  placed  to  Rockrille 
Centre  6-5UU2  and  transferred 
to  Qardan  City  miBber. 


109 

Exhibit  No.  48 


lQ^%^.  i^So 


^T^f 


^^t^  M^f^,  ^. 


'€^¥'^1^ 


'TUxiUb  SiitA»»  S>*neA* 


.%^>»-<tff: 


A      6Si^ 


110 

Exhibit  No.  49 — Letter  dated  April  5,  1948,  Appleton  Stiite  Bank  to  Senator 

McCarthy 

April  5,  1948 
Senator  Joseph  R.  McCarthy, 

Senate  Office  Building,  Washington,  D.  C. 

Dear  Joe:  In  reply  to  your  letter  of  April  1st.  Before  going  into  detail  on  your 
stock,  you  will  probably  recall  that  we  haven't  returned  the  notes  of  $5,883.77 
and  $47,060.19  which  were  due  January  15th,  for  the  reason  that  when  we  sent 
you  the  notes  to  sign,  you  signed  the  one  note  for  $47,060.19  and  the  other  note  on 
which  the  interest  had  been  added  and  did  not  send  us  a  check  for  the  interest. 
In  other  words,  we  would  have  been  increasing  your  loan  by  $463.26  and  on  this 
I  had  specific  instructions  from  both  the  Examiners  and  the  Directors  not  to 
increase  the  loan  by  failure  of  payment  of  interest.  We  are  returning  herein  the 
two  notes  which  you  sent  us  on  January  15th  marked  "cancelled",  for  the  reason 
stated  above.  This  has  left  your  notes  past  due  since  January  15th.  If  we  run 
these  notes  another  90  days  from  January  15th,  they  will  mature  on  April  14th, 
making  a  total  of  $926.52  interest  due  at  that  time.  I  don't  think  the  directors 
would  object  seriously  if  we  took  the  amount  of  interest  due  on  April  14th  from 
the  check  of  $2,400.00  which  you  are  to  receive  as  a  dividend  on  the  St.  Paul 
stock. 

The  two  notes  which  are  secured  by  collateral  amount  to  $.57,944.  and  your 
collateral  as  of  today's  prices,  including  Ray  Klermas'  collateral,  less  the  $10,000. 
savings  account,  makes  a  total  of  $65,055.,  or  a  margin  of  approximately  20<7f. 
If  there  Is  any  disturbance  in  the  market  you  can  see  that  this  margin  would 
drop  materially. 

As  to  the  note  which  we  are  carrying  for  $20,000.00  endorsed  by  Russell  M. 
Arundel,  the  Directors  haven't  looked  too  favorably  on  this  note  for  the  reason 
that  Mr.  Arundel  hasn't  any  liquid  assets  shown  on  his  statement,  as  his  statement 
shows  mostly  some  local  companies  which  he  controls  and  real  estate  which  is 
encumbered.  Therefore,  I  think  you  should  advise  Mr.  Arundel  to  be  prepared 
to  pay  this  note  when  it  is  due  on  June  8, 1948. 

As  far  as  I  am  concerned  personally,  if  your  collateral  will  show  a  20%  margin 
without  Ray's  savings  account  after  the  Arundel  note  is  paid,  I  will  ask  the 
directors  for  their  consent  to  release  Ray's  savings  account.  As  soon  as  we  receive 
the  $2,400  check  for  the  St.  Paul  dividend  we  will  mail  you  the  two  new  notes  to 
sign  so  we  won't  be  increasing  your  loan  by  the  amount  of  accumulated  interest. 

The  note  at  the  Bank  of  Black  Creek  endorsed  by  A.  Polisky  has  been  due  since 
March  8th.  I  understand  thafca  new  note  was  sent  to  you  to  be  signed,  but  up  to 
this  time  we  haven't  had  it  returned  to  us,  signed.  In  the  event  you  have  mis- 
placed the  note  which  we  sent  you,  I  am  enclosing;  herein  another  note  which  you 
will  kindly  sign  and  return  to  us  as  soon  as  possible  so  we  can  get  this  Black 
Creek  matter  adjusted. 

It  would  be  my  judgment  that  MacArthur  is  going  to  run  first  in  Appleton  and 
that  it  will  be  a  close  second  between  Stassen  and  Dewey.  The  early  part  of  last 
week  we  heard  that  you  were  going  to  be  in  Appleton  last  Friday,  and  I  figured 
that  you  were  probably  going  to  Introduce  Dewey  at  his  speech  that  night. 

With  kind  personal  regards,  I  am 
Tours  very  truly 

President 

MAS:  H 


Ill 

Exhibit  No.  50 — Letter  dated  Septenibcr  29,  l'J',8.  frntn  AppUton  State  Hank  to 

Senator  McCarthy 

Iwritten]  n/lli/48 

September  29, 1948 
Senator  Joseph  R.  McCahthy, 
%  Hotel  Appleton, 

Appleton,  Wisconsin. 
Deab  Joe:  Last  week  we  were  finished  with  an  examination  by  the  State 
Department  and  they  placed  your  note  endorsed  by  Russell  Arundel  on  the 
objectionable  list,  meaning  that  we  either  must  get  the  note  paid  within  the  next 
ten  days  or  charge  it  off.  Of  course,  when  it  comes  to  charging  it  off,  it  would 
mean  immediately  handing  it  out  for  collection. 

They  were  very  much  insistent  that  we  take  the  $10,000.00  savings  account 
of  Ray  Kiermas  on  payment  of  the  note.     I  am  just  giving  you  this  so  you  can 
see  that  this  needs  your  immediate  attention. 
With  kind  regards,  I  am 
Yours  very  truly, 

President. 
MAS:H 


Exhibit  No.  51 — Letter  dated  October  9,  19^8,  Senator  McCarthy  to  Appleton 

State  Bank 

United   States   Senate, 
Washington,  D.  C,  October  9,  1948 
Mr.  Matt  Schuh,  President, 

Appleton  State  Bank,  .■ippleton,  Wisconsin. 
Dear  Matt:  I  am  just  in  receipt  of  a  notice  to  the  effect  that  my  note  of 
$6810.28  will  be  due  October  14,   1948,  and  that  my   note  for  $46,133.68  will 
fall  due  on  the  same  date. 

Matt,  if  it  is  agreeable  I  wish  you  would  take  the  interest  due  on  these  two 
notes  out  of  the  interest  fund  I  have  there  and  renew  the  notes. 

Received  a  letter  from  Bill  to  the  effect  that  the  account  he  has  up  as  col- 
lateral has  increased  in  value  by  approximately  $400.00. 
With  kindest  regards,  I  am 
Sincerely  yours, 

Joe 

Joe  McCarthy. 
McC :  mh 


Exhibit  No.  52— Letter  dated  October  IS,  19^8,  Appleton  State  Bank  to  Senator 

McCarthy 

October  13,  1948 
Senator  Joseph  R.  McCarthy, 

Senate  Office  Building,  Washington,  D.  C. 
Dear  Joe:  I  received  your  letter  of  October  9th.  but  in  that  letter  you  made 
no  mention  of  our  letter  to  you  of  Septeml>er  20th  with  reference  to  the  Arundel 
note.  Lawrence  tells  me  that  he  heard  through  F^ill  Lawlor  that  it  is  ytnir  inten- 
tion to  sell  the  preferred  stock  of  Chicago,  Milwaukee.  St.  Paul  &  Pacific  and 
pay  the  Arundel  note.  This,  of  course,  will  lower  your  collateral  by  $20,rK)(X(X) 
and  surely  it  would  put  Iwth  you  and  tne  in  the  doghouse.  I  can't  .see  any  way 
out  of  this  except  for  you  to  insist  on  Arundel  paying  this  note  at  this  time.  I 
am  afraid  that  unless  this  matter  is  adjusted,  they  are  going  to  ask  me  to  sell 
all  of  your  collateral  and  any  additional  collateral  that  we  might  have  that  is 
hypothecated  to  your  notes,  so  that  the  loan  will  be  paid  up  in  its  entirety. 

I  hope  that  you  can  arrange  this  within  the  next  few  days,  so  I  won't  have  to 
dip  into  Ray  Kiermas'  savings  account  in  order  to  adjust  your  loan. 
With  kind  regards.  I  am 
Yours  very  truly 

President 
MAS :  H 
AIR  MAIL 


112 

Exhibit  No.  53 — Letter  dated  October  18,  1948,  Senator  McCarthy  to  Appleton 

State  Bank 

United  States  Senate, 
Washington,  D.  C,  October  18, 191,8. 
Mr.  Matt  Schuh, 

President,  Appleton  State  Hank,  Appleton,  M'isconsin. 
Dear  Matt  :  Just  returned  to  Washington  and  received  yours  of  October  13. 
Wonder  if  you  would  hold  up  everything  on  this  until  I  return  to  Appleton, 
which  will  be  immediately  after  the  election. 
Sincerely  yours, 

Joe 

Joe  McCarthy 
McC :  mh 


Exhibit  No.  54 — Letter  dated  October  20,  19^8,  Appleton  State  Bank  to 
Senator  McCarthy 

October  20,  1948 
Senator  Joseph  R.  McCabthy, 

Senate  Office  Building.  Washington,  D.  C. 
Dear  Joe  :  Your  letter  of  the  IHth  received,  in  which  you  requested  that  I  hold 
up  everything  until  you  return  to  Appleton  right  after  election.     I  can  hold  this 
up,  providing  you  write  me  a  letter  immediately  advising  me  that  you  have  made 
arrangements  to  pay  the  Arundel  note  without  using  any  of  your  collateral, 
which  we  now  have.     Otherwise,  unless  I  have  something  definite  along  these 
lines,  I  will  have  to  ask  that  this  be  taken  care  of  before  then,  because  it  is  right 
down  to  the  point  now  where  I  have  to  act. 
With  kind  regards,  I  am 
Yours  very  truly, 

President 
MAS:H 


113 


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1    tc^  il^TlON/':-  J  •^N^ 


Ss  It  '■»  i/ 


114 

Exhibit  No.  56 — Letter  dated  December  16,  1948,  fi-om  John  R.  Priec  to  Soiator 

McCarthy 

[Copy] 

December  16.  1048. 
Hon.  Joseph  R.  McCarthy, 
United  States  Senator, 

Senate  Office  Kldg.,  Washingtoiu  D.  C. 
De-ar  Joe:  It  was  certainly  a  pleasure  to  hear  from  you  last  Monday  niominjr, 
and  I  thought  it  very  considerate  of  you  to  think  of  me  out  here  in  Santa  Ana. 
As  you  suggested.  I  bought  f(»r  myself  and  a  few  close  friends,  something  over 
one  thousand  shares  of  Seaboard  Airlines  .'Railroad.  My  average  cost  was  ap- 
proximately 21.  The  stock  went  ex-dividend  >  1.00  yesterday,  and  as  .so  often  the 
case,  it  lost  more  than  the  dividend.  However,  they  should  earn  around  .^T.HO  a 
share  this  year,  and  if  the  first  quarter  of  1949  dividend  is  as  you  expect,  we 
should  certainly  .see  the  stock  run  up  in  price. 

Joe,  no  doubt  you  will  stay  pretty  close  to  this  picture,  so  if  you  .see  or  learn 
something  that  in  your  opinion  you  feel  the  stock  should  be  sold,  I  would  appre- 
ciate very  much,  a  wire  or  call  to  that  effect. 

Once  again  many  thanks  to  you  in  my  behalf,  and  I  hope  it  will  not  i)e  too  long 
before  you  again  pay  a  visit  to  the  West  Coast,  and  I  will  be  able  to  buy  you  that 
drink. 

I  told  Mr.  Bry  Williams.  President  of  the  First  National  Bank  in  Fanta  Ana, 
that  ,vou  had  sent  him  your  regards,  which  he  appreciated  very  much. 

Kindest  regards  and  every  good  wish  for  a   Happy  Christnias  and  a   most 
Prosperous  New  Year. 
Your  Friend. 

JRP/d 


Exhibit  No.  ^7— Letter  dated  -January  5.  19J,9,  Setwtor  McCarthy  to  John  R.  Price 

United  States  Senate. 
Committee  on  Banki:.g  and  Cthrency, 

January  5,  19^9 
Mr.  John  R.  Prick, 

Dean  Witter  d  Co., 

516  \orth  Main  Street,  Santa  An<7,  Californi<i. 
Dear  John  :  I  appreciate  receiving  your  letter  of  Dec^^mber  16th.    It  was  good 
to  hear  from  you  and  it  was  also  good  to  talk  with  you  the  other  day. 

The  Seaboard  still  looks  good  to  me.     In  fact,  so  good  that  I  picked  up  about 
2.000  shares  myself.    While  I  am  disappointed  th:!t  I  didn't  wait  until  it  dropped 
a  little  lower.  I  still  feel  that  I  got  a  ver;  good  buy  and  mine  averaged  around  21. 
\\\X\\  every  good  wish  to  you  for  the  New  Year,  I  am 
Sinc<>rely  yours, 

Joe 

Joe  McCarthy. 
McC  :  hn 


1 1  r, 


recently,  in  order  to  aveniKf  down  my  original  cost  of  21-3/8.  I  will  appreciate, 
,I(>e.  anythiiiK  that  you  can  tell  me  on  this  picture,  as  I  have  sold  a  considerable 
amount  of  this  stock  to  friends  and  ac(|uaiiitanccs,  and  of  course  they  are  asking 
rae  questions  daily  as  to  whether  I  think  we  should  continue  to  hold,  due  to  the 
fact  there  has  been  no  dividend  de<'larMtion.  You  probably  noticed  that  their  last 
year  earnings  were  approximately  $7.70  a  share,  which  is  excellent  to  say  the 
least. 

I  notice  by  the  Los  Angeles  Times,  that  you  were  recently  out  on  the  West 
Coast,  but  suppose  that  every  minute  of  your  time  was  taken  up  with  otflcial 
duties:  otherwise.  I  would  have  enjoyed  the  opportunity  of  seeing  you. 

With  kindest  personal  regards,  I  am 
Sincerely, 
JRP/d 


Exhibit  No.  59 — Letter,  March  10,  ]9.'i9.  to  John  R.  Pricv  from  Senator  McCarthy 

United  States   Senate, 
Committee  on  Expenditities  in  the  Executive  Departments. 

MarOh  JO,  19^9 
Mr.  John  R.  Price, 

%  Dean  Witter  rf  ComjHiny, 

516  yorth  ]fain  Street,  Santa  Ana,  California. 
Dear  John  :  Some  of  my  friends  who  are  very  definitely  interested  in  Sea- 
board Air  Line  Railroad  still  tell  me  they  feel  it  is  one  of  the  best  investments 
on  the  board.     However,  as  you  know,  it  is  always  possible  they  may  be  one 
hundred  percent  wrong. 

I  am  enclosing  herewith  letter  which  I  today  received  from  the  president  of 
Seaboard  Air  Line  Railroad,  which  I  feel  will  not  be  of  much  value  to  you. 
I  don't  know  if  I  told  you  I  picked  up  some  Seaboard  myself  and  definitely 
plan  on  holding  it,  at  least  until  a  dividend  is  paid.     If  I  get  any  more  infor- 
mation, John,  I  will  forward  it  on  to  you. 
Sincerely  yours, 

Joe 

Joe  McCabtht 
McC :  d 


Exhibit  No.  60 — Letter  dated  August  25,   1950,  to  Appleton  State  Bank  from 

Senator  McCarthy 

United  States  Senate, 
Committee  on  Expenditures  in  the  Executi^te  Departments, 

Aufiunt  25,  1950 
Mr.  Matt  Schuh, 

President,  Appleton  State  Bank, 
Appleton,  Wisconsin. 
Dear  Matt:  I  had  hoped  to  see  you  in  Appleton  in  early  August  and  for  that 
reason  put  off  answering  your  letter  of  July  2r>. 

The  idea  of  .selling  Seaboard  at  this  time  is  extremely  tempting.     However. 

I  have  checked  with  some  of  the  Board  of  Directors  and  they  advise  again.st 

f'ling  under  any  circums;tnii' .s      Goodbody  &  Company  also  jrivps  SeMbo,Trd  a 

high  rating.     For  i  i  T  th'^ik  we  .should  hold  on  to  ^nv 

■'7 


116 

Exhibit  No.  61 — Letter  dated  October  3,  1951,  to  Appleton   State  Bank  from 

Sen-ator  McCarthy 

[Written]  IC 

United  States  Senate, 
Committee  on  Expenditires  in  the  Execvtive  Departments, 

October  3,  1951. 

Mr.  L.  F.   SCHREITEIl, 

Assistant  Cashier, 

Appleton  State  Bank,  Appleton,  Wisconsin. 
Dear  Larry  :  I  wonder  if  you  would  send  me  all  of  the  security  which  the 
bank  holds  at  your  very  earliest  convenience. 

I  understand  also  that  you  are  holding  some  of  Ray's  security  as  collateral 
for  my  loan.  If  those  have  not  been  returned  to  Ray,  I  would  greatly  appreciate 
it  if  you  would  also  take  care  of  that. 

It  is  rather  important  that  I  get  the  Seaboard  stock  at  the  earliest  possible 
moment.    Therefore,  I  would  appreciate  it  if  you  would  rush  this  for  me,  Larry. 
Hope  to  be  back  in  Appleton  for  several  months  this  fall,  at  which  time  per- 
haps we  can  get  together  for  that  long  overdue  bottle  of  beer. 
In  the  meantime,  good  luck. 
Sincerely  yours, 

Joe 

Joe  McCarthy 
JMcC :  K 
Air  mail — Special 

Exhibit  No.  62 — Letter  dated  October  5, 1951,  to  Senator  McCarthy  from  Appleton 

State  Bank 

[written]  IB 

Oct.  5, 1951 
Senator  Jos.  R.  McCarthy, 

Senate  Office  Building.  Washington,  D.  C. 

Dear  Joe  :  In  accordance  with  your  letter  we  are  herewith  enclosing  the 
following : 

700  shares— SEABOARD  AIR  LINE  RAILROAD  COMPANY  common  stock 
Cert.  No.  CC2472/CC2478  inclusive  for  100  sh.  each  n/o  Joseph  R.  McCarthy. 

700  share.s— THE  FOUR  WHEEL  DRIVE  AUTO  COMPANY  $10.00  par  capital 
stock  Cert.  No.  C6101/C6107  inclusive  100  shares  each  n/o  Joseph  R.  McCarthy. 

2,000  shares  GOLDFIELD  GREAT  BEND,  Ltd.  Cert.  No.  2664  n/o  Joseph 
R.  McCarthy. 

Drovers  draft  No.  90144  for  $879.81  representing  the  amount  held  in  your 
Interest  reserve  account.  This  amount  includes  the  10/1/51  dividend  on  700  sh. 
of  Seaboard  for  $700.00. 

ALSO  enclosed  are  our  collateral  register  sheets  Nos.  2867,  2871,  2885  and  3216 
which  we  ask  that  you  kindly  sign  and  return  to  us  in  the  enclosed  self  addressed 
envelope  at  your  earliest  convenience. 
Yours  very  truly. 

Asst.  Cashier  d  Trust  Officer 
Enclosures 
Reg.  Ins. 
Ifs :  Is 


1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 


;CP-7-50 
lEf29-50 

HC21-50 

IPR25-51 

JUN22-51 

JUl-6-51 

SEP24-51 

a££21-91 

IIR21-92 

JUI20-52 


PC 

laoooix) 


L200^ 


♦300.0C 


*zoaoo 

*346I)C 


♦♦230 


'491 


^♦0.74 


♦  ♦500/)0 

♦♦801i5 
♦♦803.75 
♦1J003.75 

♦1349.75 
♦UMS 

♦*154j58 

♦♦155.42 


H 
A  A 
SL 
A  B 
A  B 
I    A 

I    • 
&A 


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NATIONAL    SAVINGS    AND    TRUST    COMPANY 

d 

Washinoton.    D.   C. 

1 

12 

T 

13 

; 

14 

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15 

( 

16 

; 

17 

: 

18 

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19 

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20 

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21 

■ 

22 

23 

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■     ■-'■■■' t..                       -.     ■■—     n-,.-m.w    -  — '       ' ■           '■           11^™ 

'  h«rrbT  t»Mnt  to  th«  By  Ltwi  Rules  and  Rtgultttons  go<tming  this  account,  m  prtntad  In  ttm 

Patstwok   and  thi>  aisant  shall  include  all  amendments  whtch  may  b«  hefvafttr  mad*. 

SIGNATURE 

. 

SKi 

NATURt 

. 

118 

Exhibit  No.  65 


^  / 
SAViNQS  DE>»ARTMENT 

/UiV.  62950 

T*  b«  plmcti  (•  tb«  areik  af 

SEIm'.    J  of  MC   CARIHY 

IN 

National  Savings  /Trust  Combwy 


19. 


CurrMioy.. 
Coin* 


Ghfwkt,  Aarou^wt: 


DaBtn 

500. 


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7000. 
JOOO.t^O 


10300.1)0 


119 


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5.000^0 

120.75 
7.000.00 
3.000^0 


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20  6.60 


f^8.-88 


100.00 
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f9aC!9  ZM7.60* 

JP  UN    (f  7.567.60  ♦ 

VI  HM    J  r  7,067,60  • 

J9JM/5  6.617.6a» 

WJW/J  6.4«7ji0# 

VI  vw     ?  5.46  8.60  • 

VlMWi     J  5.467;60« 

?d«i»»?p  5.067.60* 

9(»mi  r  4.65 1^0 « 

WHIT    /  3.95  1.90  • 

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V)iW/5  »t.95  1.90« 

v\  u   fe  "1  1.503.90  ♦ 

WJM'rr  1  t.055.9O« 

WM,?f  10.99  2.40  • 

39Jtt?«  10.97  7.40* 

KrjtJ;  10.952.40* 


$ft«iKr*  8.968.97  • 

^o  aim  ^  »  "i.rtfir.i?  ♦ 

50  IMC  2*  2.868.97* 
Vi*p  f  7.868.97* 
«»«»f«  5  7.768.97* 
<n«TP  7  7.54  8.2  2* 
y)«W>    «    .         540.22* 

9n*rrtr  p    2.459.78 

Vi<n>;»  7.540.22  • 

5nvp  ;9  2540.22  ♦ 

»S!r25  7.540.22* 

war    I  34  0.22* 

V>rT     ^  '0.34  0.22* 

SeiXTft  5.19  0.22* 

5ffttrr3t  ^5.090.22* 
Snmt    tf^K,^  1.909.78 

^rmov/  *"  8.^9  0.2?  • 

sofr(^^  7.090.22* 

51  mil  6.990.22* 
5/JIW/7  3.99  022* 

ii  tmtT 


The  Riggs  National  Bank  of  Washington,  d.  c. 


DU>^^NT  CIRCLE  BRANCH 


121 

Ex  in  HIT  No.  68 


■i«aan^' MoCANTViv 


^itmt^  ^icJU»  4&ni4i« 

•   •  *        *  V.l_       •  •  • 


Septenber  29,  1950 


Se^Inf^s  Bcpartaant 

National  Savings  axid  Trust  Company 

UasMngton,  D.  C. 

To  Whoa  It-ffey  Cono«m: 

This  is  to  authorlM  Hlas  Jean  F.  Kerr  of  vr  staff 
to  wlthdrow  $10,000  fro«  ny  saidnga  account  for  ne. 

Following  is  Miss  Kerr\8  signature! 

jlnQfifeiy  yours, 

JCE  McCARTHT 
HCC:K 


^^ 


122 
Exhibit  No.  G9 


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123 
Exhibit  No.  70 

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Exhibit  No.  71 


125 


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254  Senate  Office  Bldg* 


t>in% Deo,  i.  195 


SMDOJHDMa 

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TOTAL  ;i        10,000     X 

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>i>  — <  4iM  um  ik«f  lU  Htmt  an  v«4»«4  (aHnt  M  l>ul  ^ar^MW 
w  Mh  ■««*  •!  it!  ov«  «/Ik«  la  caah  o«  tolrrtM  cv«4Ma4  flM(  tte«  Bank 
'Jl  ■»<  4u«  «ilit>iMD«  «•  <tM  MUa>»  o<  corUciiot  aao^  ^<"  ■'" 
>«  h«  liaMa  ui  MM  «<  ikata  ra>lxr<  oa  tw(li|«»cc,  <>•  tea  Io«m<  'n 
WMMi  ikM  auk  cjaiaapow^raa  ao  aalaoa^  ifcall  oo  ba  iMbtc  auap< 
•■•  ■•  v»<<  aaf I'fafKai  ika<  daa  Baak  m  aallaaiiavi  afMMa  sua  aas4 
■Maw,  ttrtaly  oa  im^lffctly,  ■*  aoy  Wak,  Lnalo^inf  *•  «aawaa  «a 
pavoa  (mar  a«a-rf«  rtaacfc.  4mft  m  t9m4n  m  »ot^ii*om*i  pttr^"*'  *" 
taa»  at  caalt,  tm*  thtU  mm  k«  luMa  to*  4wtM>aMa  »<  diacki  aa  ^rafia 
••  laa  arvarwl  a<  €m*Mt  as  ra««Ta4  la  parOMai  noa  tot  loaaaa  ikaaaaa. 
*•<  Mm  B«Jkk  IMT  ikart'  kaa*  aar  Mm  m  anr  nma  katoM  aciual 
naal  yarataai.  wWrtxa  muriM^  aa  ■••.  «a4  aur  tim  f*a'|a  back 
•ar  MMB  4ra>i.  oai  ik<  laxk  t(,  vii^a  *>  >*nk'a  aanMl  k«a4lm4 
Mno4  taa  au^  .laai.  n  ■  •aaarv.M^  W  Ifca  Baak  lk<t  *a  ta«  .t 
•Mt  aa  k*  haaiaaaJ  t%*.mM  dx  «rawar'a  xaauai,  ik«  la  aoUroint 
koa^  aa  aaupoai  Ika  kant  aUT  c»>ar»»  ka<*  aaaooaa  a<  .acoma  M«. 
.1  aaT;  tm4  *vat  iS.a  aacotMi  .a  oil-wai  lo  all  U»«  ai>J  patu>a»>>aM  a< 
riaa   Ua.iaJ   tuaat  aa4  a<   ika  D.a<a.<i  at  Cal.aik  i  ■•"  a»  baraaliar 


«NOOI»««    ALL    CM«CIC«    IM    TMI«    MAMM««1 

»«▼  TO  T»a«  o«io««  or 
7*r  *«iW  Nmtional  Bmmk 

ITOU*     ••••aATUWKI 


126 

Exhibit  No.  73 


.  .  M  ,     J I  i  i  I  I  :     '  I  '  III  ■     J  !  -  -      '  '  .  _:._.:]  : l_\\ 


I  j  I  '  ■  !  M  J  M  j  I  Ml  M  I  M  i  - 


TTMTT 


i.^V- 


"^    !  '  i  !  T-^T" 


I    Ij 


_i- 


I  I  '  !  I 


^i^-m 


rr- 


i-^ 


■i  j  '  I  '  I  I  I  ;  [ 


mmnmmjmM*:*'' 


m: 

o-'Sw 

cn« 

la  s 

Sii 

03  09 

55 

:;'    5 

f  " 


T- 


S     5 

2      « 


••ox 

r- 

r^  r>  < 

32? 


9X9 

o  </»  fn 

o  m  ^ 


-'tii 


rm-T  •  • 


ti-li 


i 


II 


•    •    • 


127 

Exhibit  No.  74 


•  •• 


^^^^  y^  J&^ 


128 


Exhibit  No.  75 


^jUe^ p-.   Z^.l^  J^'<^ 


•  •     • 

•  •  •• 
•••••• 


•••••• 


»«•••• 


>    ^  -<     •     •    •  ■ 

•  '     •  •       •  ••  • 

•      ••  •      •         « 

•  •• 

•  •  •  • 

•  •  •       •••••• 


*^"^i-i^'*ug'^^^^"'"" 


129 
Exhibit  No.  76 


I>EPOSITKn  WITH  *- 

Oy  AIM'LKION.  UIS. 

In  r*(rivinii  iirm«  d.r  Jrp«.ii  ..c  collrxion.  rhi<  li«cik  «>ii  <>ntv  <•  J,. 
p««it«r'«  collrtlini  Jcrnf.  ji<J  j»umr»  no  rr«|«in>ih>lil\  twtotij  ihr  rarn  i<r 
.<(  Jur  xrr  Ml  lrm>  Arr  i  rrjilrj  •uKirM  l.<  hnal  p^iknirttl  iii  ,  j.h  ,.r  M.Uriil 
.rr.lif.  Iln.  lUi.k  »ill  n.X  he  Ii4hlr  (..r  .Irl^iilf  .r  n.cl.Krn..  -I  .1.  .luK  ^ 
lr>l.vl  ...ri.-rx.n.lrril.  n..f  t..i  l.—r.  m  lr*i...t,  in.l  r j.  h  ,  ..rrr.(..r..lrMI  «■ 
.rlr.i..!  .twM  n,.i  U  l.*M.  .,.r|.i  I.T  .1.  . .« n  nr«l,,i.n.r  II...  U^nb  ..f  il. 
>..rri-.t«.Hi.l.nl.  mjv  ..  1..I  ifr.....  J.rr.  ll»  ..r  in.lifr,.!,.  ...  .„>  I^^i.t.  ....  lu.linu 
ihr   pjtor.  jn.l  Jt.rpl   il>  Jr^ll  .>r  irr.l.l  dt  .  4>n.lil..>njl   pi«n..ni  ii.  Ii<  <i  ..)  ,  i.h. 

■  I   ma\    ih«ri;(    hai  k   An\    il.ni   al   jn>    limr   Srlorr   hii.il    |<j\ri..i.i.    »lirfl.rr   rr- 
lurnrj  iir  n>i<.  alvi  an\   lITin  JrjMn  on  lhi>  llinli  n>>(  |{>i.kI  ji  ,I.>m'  .■(  Ku.in.  •• 

■  HI    Jj\     JtpoMlrtl. 

I   \PIK    11!^  AC.HttAUS'I.  IIIMn   I  Mil'  Hf  1 1  ^W 
AKl    111  RliMY   hi  h'slK  I'  IV 


Applti.'ii.  NX  l^..          ^^^ 


''^c .  /? 


1'    ^    C 


I'LLAsL  LI^T  FACH  (.Hh(.;K  sl.l'ARAIIil 


CLRRLNt.Y 
COIN 


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ZS.OJ 


-tt    'M-M    ALL    1  Hf.  k-    AM*    I'i-.^i  \-    \\ 


7^-TA!  vi7  ^  5"  y  3 


1       .   ■        ,    -l; 


130 
Exhibit  No.  77 


i.""-!  .'iiiS*? 


>EPOSITfcD  WITH 
Oh  APPl-ETON.  WIS. 

In   rrx-uinn  iicmi   l,>r   J«  p.»ii  .>r  ».'llr>ri.m.  ihi«   Hjnk   »tt«  tmlv   »   dt- 

,...l..r'.    ...Ilrvlm^   ..u<n«.    .n,!    .,..,mu>    n p,.n.,h.lif>    Kv.mJ   thr    r«rr»  .«■ 

I  Jiu  i.r.  Ml  ,i.m-  .,r.-  >r.J.<.-.l  ...hu.  X..  final  r->n><nr  .n  .j-l,  ,.r  ~.l.rnl 
rf.lK..  n...  M.,nk  ",;l  n..»  K-  luhU-  t.-r  .1. 1.iull  .r  n.-.-lit.n,  r  ..(  i(.  JuU  .r- 
.t.a  vi  rr.si-..nJ>ni.  ..>.r  t..r  I..,m  .  .r.  ir,,n.,i.  ,.„,l  .uh  .  ,.rr,  .(vr,  J.  n<  «. 
.i-l.iifd  .lull  n..t  K  lijhi.-  .x.^-pt  (fr  ,f.  ,.»n  n.-^lictn.-f.  Tin.  lUnk  i<r  ii. 
orrv.fS.nJ.  HI.  m.n  ^,nj  ,i>  m..  Jir.,  ,U  ..r  .iiJirr.lK,  !,■  ..n^  K..nk  .nju.l.nf 
h.  |'..\..r.  ..n.l  .^.i-pi  i(.  .lr..H  ..r  .r.Jif  4.  . .  n.lM.,.njl  piMn.ni  m  li,u  I  .j.h: 
I  m.o  .li.ui;c  H.uk  jn\  ii.ni  jt  jnv  iim,  Ktorr  hntl  p^vmcni.  "Ii.ilur  r.- 
urni.l  ..r  11. {.  ,iU.>  tn\  iii-m  Jfj"n  i-n  ihM  Hjnli  not  (>iv.J  Jt  vlx,-  ,>l  hu.im-.. 
.11  Jj^    J,-r...,Kj 

i   MMK    nil-  AuKMMfM,  I IIM^  llNrif'  [-Ua 'W 

•\Kf  ii!  Ki  Hi  ntro-ifip  l.V 


> 


^ppc- : . -A  t^ ,    ^>:;^. 


^    / 


/ 


w-5 


n  hA^i    I!-I    fcAiJli  i.HLi,k  ^i.rAKAILM 


.:-/.<- 


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J.^TM-''X^CS>       Od 


■t     TiUI    All.    ^  tifc'  K^    -Wl'   IHvARS   ARE    ESlK^R-fcO 


131 

Exhibit  No.  78 


1-A 


APPLETON  STATE  BANK 

APPLETON,  WISCONSIN 
Henr;    J.     'H^atr-.ten  A   file  A;  noa 


:or;vil''-e,  '.Unconain 


Ituatl  iHntinrsiHai 


3.V0- 


81S1- 


662  5- 

2  0  0  .0  0  • 


1  Od.l  3- 
3.0  0- 

3.0  0- 

4  21.7  e- 

1,0  •9.7  2- 

6  50^  6- 

f>x  b . .  ..  - 
23:5  9- 

lijoo- 

56  3.4  6- 

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1,0  7  6  .6  7  - 


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4,3  0  0.0  0    '1.1.  l^'*'.- 


5  0  0 .0  0  -'■•«  1  *  <* 

JMl26'U 
1  2  7 .5  9  JM 2 au 

JM  3  I'U 

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4  7  3.S6»l.i.     ♦M 

I  1  i      (>'44i 


4.3  0  0.0  0* 
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4.2  33.«8* 
4,361-4  ?• 
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1. 5  6  4 .',  i  • 

14  0  8b- 
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1,U  32X)  7« 


132 


•  HCCTMO.- 


1  B 


APPLETON  STATE  BANK 

APPLETON,  WISCONSIN 
«»„_H|W"^J.   TanStraten  &  wife  k^^ea    -T^^^^   ■ 

R.  R.  #1,  Hortonwm,f,  wi«.      *■**•; *^L;^'..•■*^ 
" — '••<ir;?«*^«».7.';» 


.  (Uuatl  Mnuaarromm 


i,3  lO.O  2- 

184^'  5- 

5X>  0- 

?  ?  4  C  - 

13-65- 
459^6- 


-JOL-VA^^ 


400j00 


MOOjOOMK    2^ 

M«26'U 

serie'w 
;iU'i9*u 


1,4  32j0  7» 

lie .'/  '^  * 

1,516X)  5« 
l,33ia  0« 

1,3  2  o.l  O  • 
l.bal^  ?>♦ 
i,^  4  _<.;  --^» 

1,535^  3» 
1,0  7  o  _J  7  • 


1j60- 

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1  5.0  0  - 

9oo.;>o- 


1  5.4.  c- 

1.6  0- 

1,027.80' 

9.60- 

5.0  0- 

1  ^.i.l  3- 


1  0  0.6  5- 


1  5  0j0  0  "itil  19'4i 


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3  4  4  'j  ^  "-•  <:u*» 
1  5  7  .y  9  KLt     9'W 

au  1  ^''•fr 

JLI.  1  3'.t 

UU  30'W 

f 

IOOjO  0  UUSO-U 
JIM     7«7 


1,211X)  2« 
1,361X)  2«. 


1,1;  t^  0.4  4  ♦ 

3  «J   /  .y  4  • 

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•*'^'V"»'"w»«-»»***<r"'w^i«iwipi»*^*«!w?wnr:.'»fW" 


133 


?  A 


APPLETON  STATE  BANK^- 

APPlETON.  WISCONSIN  "^T- 


t  ■■OHtitTroi««*t 


150- 

1  2.0  0- 


7.1  9 


2  U  0.0  0  ■■^'      1^/ 
4  9  7  X)  9  HAI  2 1*«7 

MAt  2  6*47 


574i  4» 


1,2  4  3^9 


1X)6 


135 
2A0 


2  635 

3i.7g- 


JW!  2  7*47 

1,166B3 

jai5M7 

1.2«9^« 

JW.  17'47 

1.263j08 

taC     6*47 

UB  12^7 

1,4  3  233 
1,4  0  63  3 

UK  20*47 

1,37  4.5  4 

2  B 


134 


APPLETON  STATE  BANK 

APPLrrON.-WIBCOMtlN 
~»«t        Etsoxy  J.    7?in   Strnten  A   wife  A*T>e» 
.»—...        R.   R.   #  1  Hortonvllle.   Win. 


2520 
10J0  4 

3  5X10 


8  5  728 
2X)0 


4.1  9- 

6.0  0- 


73  0-  2  8.7  9- 

:>  8.7  9  K 


?  0  .ri  0  - 

1,090^68- 
5.4  6- 


•ci»*«rTa 


Mi28W  4t«34 

S-OO  .  996^0 


930i>0  18J0O 


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-oo.  StfllH?                             900a0# 

■*"  XOOJOOStPlSM?                        1,0  00.1  o« 

13^5  ,                                                       » 26-47 

lOOSt)  StP  2  7«47 

5.3  0 


SEP  26*47  9  86>4S 

8  8  6>i5 

SCf  29*47  8  8  1.15 

9  23  7KT     3'«7  9  3  33  2  • 

4jOO                                                                                      K*     ''^f  929.92 

ltfOX}0    «24*t7  1.08932 

Kf27M7  83224 

(KI29  2  3  024 


1,11180     OCT  31  1,342X)4 

2234  W     I  1,319.70 

Miy     5*47  1,3153  1« 

NUf     6'47  1,3  0  9.5  1» 

*l«o-  9«:^9-  •••ao'*^  1.85125* 

m  20*47  l,8  8  0i01 

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BU  31*47  9  4  8^81* 

Ja;.  1 1>'«6  9  1  1  .a  9  • 


135 


3  A. 


APPLETON  STATE  BANK  -•>^. 

APPLETON,  WIICONBIN  "^"'-^ 

~AM.     H«nry  J.   Van  Btraf  n  aad  wljfg^  Agggy 
«o«.. R.   R.  »1     Hortonyllle.    »H. 


3  62  0 


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2  6 .9  3  - 


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FlbX4'4a 

2  0  J.."  7  .-<-i'      .;  40 

12  8.7  6  nm  17a 

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9^7  :* 

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352D6« 
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66  8^2* 
1.7a  9.25* 
1.76  2.3  2* 


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136 


•  MgCTNO  —  3    fi«~- 


APPLETON  STATE  BANK 

APPLCTON.  WISCONSIN 
«*M».  HfoU.  J».  7»n _8trat«n  and  wlf«  Agnes    ,%v,  v*^ 
R«  R.  »1    ^rtontrllle,  iri».       "^•Vi 


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1  0  0..0  0  M',  1  i'*e 


57^5- 

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1  3j6  5- 

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^x.^     9  46 
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1,7G  155« 

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i:i7 


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^mmm^mr^w^mr 


•  MSCTMO.. 


4  X 


APPLETON  STATE  BANK 

APPLCTON.  WISCONSIN 

HAM<  B«nry.  Ji  fan  atraten  azul  alfa  Xga^m 


23  7- 

103i  S- 

3X)0- 

4^6- 
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1  050- 
1  02.1  3- 

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16^0- 

3  6  0- 


150J00- 
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sw 


3.2  0- 
331- 

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t.'  0  0.0  0  uii  ii  V4h 

JM     7'4» 

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1.326.t»* 

1,626£9» 
1,62  3.69« 
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56  1.4  ?• 
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1,49  4X)8  • 


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1,9  4  4.7  3  • 
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i,  ■J  :  ■-'        • 


138 


APPLETON  STATE  BANK   •. 


APPLETON.  WISCONSIN 


,869^98 

1,36  4^5« 


6.0  0- 

7  _c  c  . 


4.3  0- 


2  23  A- 


1,5  00  0  0- 


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4  OO.OOjCI18'*5 

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139 


I 


APPLETON  STATE  BANK 

APPLerON.  WISCONSIN 

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APPLETON  STATE  BANK 

APPLETON,  WISCONSIN 

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141 


APPLETON  STATE  BANK 

APPLETON,  WIBCONSIN  '^ 

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142 


APPLETON  STATE  BANK 

APPLETON,  WISCONSIN 
MAMc  Ht!iiry  J.    Vn:'i   otruter.    i  ivlfe   .wite-i 
•!■■     H:  .?.l  Hjrtaiivllle,    '.^a. 


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143 

Exhibit  No.  79 


l^nry  J.   Van  Jtmtea  -  -o-arlttfj^altw  -  l^l/'-l?^ 
P»l.T»,  .fobor,  Jac}»jn  ::    ;urtl»,  .^.Iwiili— »  •'!». 


l?b6  S>lea 

$0  AUe  ■•»■/  Corp.  I        257.55  '     I        3L6.37  5        ^^.82 

10  F*a»  iitchw  iMd  207.32  260.02  60.ap 

15  i>»ck*nl  .  o'.or»  129.50  lU.21*  IJuW 

100  CoiMu»»o*lth-^j».t  .«m  L21.76  L32.72  60,96 

lgU7  :*le» 

60    Bcrk.-'nire  Pin.  .-^nni.  I        l^y.OO ;=     1.0'^.L2 i If^^lj? 


L'U-3  3|fcl>t 

60      «rO«r  PpoducU  Co.  >         -il7.50 "J5'7"-'              C i&i» 

lylj?  SaleB 

60  av...iai.-tft..-.-:-«:..'..,i.  t    1,330.33  C        133.15             ^(1.391.931 

50  ^1^  .a.ot.1.  s  ^!%:^  .  l!S:iJ      i(i.jd^:S- 

1950  Salwt 

IX  3ftlcWln  LU«»  HaeiUton  3     l.a;0.6a *     \.2T^»n 1 1^3^72 

1^51  S«le» 

«  .•ni.-.U.-et.i'.-.-.c.Wl.^.    $    2.3^1.59  =    1.570.96  l(     732.63) 

1^52  S^lca 

30  Burroa:h«  A  «1.    .ach.  d        573.01  4        520.13             H       S7.W 

50Lacl.cea.--x,.  UiD.92  390.lL               (       >0.73) 

100  AlleJ^^  ^orp.  lb). 26  2/0.27                       1-.97 

fx):.«*.Kir..  .-IT.  ^p:«.>  T.-"'.>j  y-]''t:        ?^S>) 


144 


Exhibit  No.  80 


HENRY  J.  VAN  STRATEN  REGUUTED  GRAIN  ACCODNT 
VrETH 
PAIUE,  WEBBE^c*^ JACKSON  &  CU'TIS,   laUikUK'^,  '.fISCONSIM 


Prirct 
Coamo 

10 
10 

lases 
dity 

Date 
11/2U/51 

Sales 

Profit 

Date 

Cdnniiifiaity              " 

(Loss) 

8/28/51 
11/1/51 

May  oats) 
•       "      ) 

20  M       Hay  Oats 

11290.00 

12/U/51 

15 

n         n 

1/26/52 

1?  M       Uay   Oats 

(30U5.00) 

12/lii/5l 

1£) 

B         n 

2/7/52 

10  U       May  Oats 

(llil7.50) 

U/28/52 

($  3172.50) 

Date 

Cash  In 

Cash  Out 

9/7/51 

$1,000.00 

1 

2/11/52 

2,1400.00 

U/25/52 

800.00 

5/8/52 

3^27.50 

$U, 200.00 

$1,027.50 
3,172.50 

♦U, 200. 00 

$U, 200.00 

145 

Exhibit  No.  81 

HOJRT  J.  VAN   STRATEN  REOULATED  GKAIN  ACCOUNT 

WITH 

WAYNE,    HUmffiR  &  CCBiPANT,    CHICACX),    ILLDJOIS 


Data 


S«pt.  19U9 
Dec.  19U9 


Purchased 

CoiLiaodity 

5  U     May  ^e 

1  U     July  %e 


Date 


Sold 
Connodlt7 


5AD/50  5  M    May  I^e 

7/10/^  1  M     Ju]y  I^e 

5A9/50  Storage 

7/13/^0  Canadian  Exchange 


Profit 
(Loaa) 


(     677.50) 

6.25. 

(3.23) 

_Sh2Jl 
♦(  675.55) 


Date 

Cash  In 

Cash  Out 

9/8  A9 

♦1,500.00 

1 

11/16A9 

250.00 

12/29  A9 

500.00 

3A7/50 

350.00 

5/11/50 

1,700.00 

7/27/50 

225.52 

$2,600.00 


$1,925.52 
67U.h5 


$2,600.00  $2,600.00 


This  schedule  embraces  operations 
of  Heniy  J.  Van  Straten  in  coei- 
modities  through  Wayne,  Hummer  & 
Coopaqy,  Chicago,   frc»n  the 
inception  of  the  account  on  Sept- 
ember 8,  19U9  to  the  date  of  the 
receipt  of  $10,000.00  from 
Senator  McCartl^7•  on  October  3» 
1950. 


146 

Exhibit  No.  82 


■ 

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^    ^ 

■"^^■■•^^ 

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70  >i 

<^"'--  tontAj.  .oto 

5    "-■ 

' 

i&    ':•: 

L'   .0 

Chicago,  m.    . 

10  ••j 

Virt^na,,is. 

A.J    'A/ 

l.J»dlson5  .18. 

2;.   « 

rti»ci:ia,'.is. 

i  ,»  '  jij 

CMcaco,Iu. 

5  JO 

H 

JJwl  UU 

£ 

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Colnnbia  Cttc-.Ind. 

5  JO 

5 

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25  UO 

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.,cxio.'» 

::aieral  t-irrt.,..ii. 

S.'X) 

a    i'oatal  ».oney  order 

if.'JU 

•<;.50 

But.1^,   »»M' 

t-ostal  !'0t« 

nrmcetoD,  Vaim. 

Hart,  >c^eniG»n 

ly.'A* 
1.  /J 

I. »«;'»,  Idalio 

l.e«'  loi-K  -ity 

lie«  lorls  ^it:' 

3.00 

kilmulceei  •'i»' 

■             • 

J.U..JO 

l.'/J 
iJ.X) 

25. JO 
25  .JO 

5..0 

1  plotonp   .'IS- 

Port  Chost«r,  .-.  i- 

3utt«,  i..onta.i» 

Hj^rtfoiwl,  Conn. 
canton,  ^U. 
Oreen  Jbj,  -if- 

J.. '•■/J 

■  ■  3<lv---i«r«,  iiJ- 

■^  s.rorsi<>«>  ^'^' 

l.X» 

■  Do«wr»  Orcre,  Ixi. 

■  Alo-on,  Colorado 

! 

1  tstr'iu'" 

« 

H     amrvji*$  xj-*-« 

I                       /°^^ 

il,762^J 

u 

147 


Exhibit  No. 


r 


Z\)t  Hdqsfi  fictional  ^atA 


148 


Exhibit  No.  84 


H9n\Jo4  SeCartd^.  Spectil  Aceonnt. 
254  SaiMti  6;he«  Bull  Hag, 
lashlostoa  25,  D.  C. 

MtL 


LEDGER  A 


/  1.29  2.00 
^/ 5  7  7.00 

Z' 1.762.20 

/l.31  2.00 
^  P..0O 


^  1.30 
•^    1.51750 


Y  866.37 


500.00 


3  7.4  3 


22.90 

6.4  0 

200.00 

5  0.00 

6  0.00 

25.00 

80  0.00 

125.00 

7ftJI 

25.75 

15.00 

14.54 

132.60 

31J5 

94.19 

10.50 

20.00 

7.50 

4.25 

6  6.13 

2  5.00 

20  9.5  3 

200.00 

4  4  8.00 

•^«d(^ 

3  3.4  0 

5  9.75 

82.1  1 

t.200.00 

20  0.00 

2.00 

• 

1  8  7.56 


2  0.00 


t/  4M50 
/a.096,00 


X)N»T  2  J 

jOM*t  ii 

M^Mf  24 

»MT2tf 

>0NkT2< 

MJtM 

X>JtM 

JOJtM 

MiM 

X7JIJN 


MJM  13 
>0  J*  ?5 

>0  JM  ti 
?0  Ui  16 

>OJun  19 

■>o  »*  ?0 

)0  X»i  2C 
■tO  >ti  21 


».292.00« 
t.86  9.00* 

3.631 .20  • 

3.1  3  1.20*    ?| 

4.443.20*      ' 
4.4  05.7  7  • 
4.40  7.77*  ' 
4.38  4.87* 

4.3  7  8.4  7* 
3.88  0.91* 

3.88  1.91  •    1 
2.931.91* 

4.4  4  9.4 1  * 
4.34  5.95* 
O  3  2.35* 
5.18  4.18* 

5.02  0.29* 
4,9  t  5.5  4*- 

4.89  5.5  4* 

4.eFe.04  • 

4.88  3.7  9* 
4.79  2  66* 
3.9  3  5.1  3* 

4.3  4  8.6  3*  I 
4.303.49* 
4.115.3  4* 
4.0  3  3.2  3* 
4.72923* 
4,7  2  72  3* 
/i3  5  23. 


The  Riggs  national  Bank  of  Washington  D  C. 


149 


f 

^ 

'.!jn  Jo?   "pC?-*'-/,   C.is-^>'.    '•^'••nt, 

LEPGtK   B 

254   :e9«U  Oitict   3jl:Un5, 

taahlr.iton  C5,    t).    C. 

MAIL 

""""--                          1 

Otro»iT» 

o»Tr 

BALANCE 

e«L*SC(    Bao^i. 

MT  ro.*..o  :  .. 

1  2  20 

^   AM26 

5.6  2  3.0  3  • 

4.10 

7  5.,0             200.00               yo.H2 

J(/  A*«  2/ 

5.3  1  3.1  I  • 

4222 

1 

iu  A*  2y 

5.2  7  0.7  9* 

5  0.ii0 

^U  >A   }C 

5.2  2  0.7  ^B 

^.00 

800.00 

/      S8'!.00 

j{j  xm  }0 

4.4  1  5  79» 

Jtl  JU.      J 

5.00079* 

A^V.JS 

10  0.00 

:>c«  AL     5 

4.501.44* 

i             8  2.00 

1  77'? 

>u  JUL      7 

4.4  0  1.6  V* 

4  O.UO 

jv  ja  /o 

4.361  6'** 

2fl50 

■>o  JUL  /5 

4.33339* 

^         '    1   „o 

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5.19  4  39* 

4  5  0.00 

.»  a  /J 

•1.744  3V* 

2  0a4 

■i04b                 ?  ».7.3 

>C/  AiL  /^ 

4.63  4  Ji* 

ibh.oo 

>(/ Jl  /4 

4.2  IS  33* 

3.4  0 

J^    . 

"1.2  4  4  93* 

■■77  1     ■  S  • 

4^7 

30JU.27 

5.4S7.4«» 
3.39  8^0* 

t9«^ 

iOJ«.2/ 

5.2  4  8^0* 

HS.IO 

yuMA    t 

5.135.10* 

100.06 

XItt,     / 

5.05  9.10* 

«1*5 

.>om;  ;0 

4.96  9.4  5* 

3i;:i,1 

U     44465 

^'        x)MJc  r0 

5.4  1  4.10* 

1  1 .00 

>OMt,  1^ 

5.38  5  96* 
5.0  3  8  39* 

1  7  50 
*t.59 

■5  6.2  9 

4  t  t.0 

t:^^i^?: 

Thc  RiGCS  NATtONAL  Bank  of  Washington.  D.  C 


150 


4  9.80 
J  0^0 
108.49 

7521 

150.00 
30.82 

1  7.50 

500.00 

52.99 
4  8.40 

2  8.15 
10JZ0 
53.53 

8.63 

1  1.02 

4  2.32 

250.00 

1  5.00 
6  4.<1 1 


'H^ 


948d 

\6l^^ 

4  9.10 

1.30  0.00 

5.10 

Hon  Joe  McCarthy,  Speotai  Account, 
254  Senate  Office  3uilUlnc, 
tashlngton  25,  D.  C. 

■AIL 


LnnGr.R  a 


16.25 


4  9.S4 

7  5.00 


7027 


2  5.1  -i 


ro.uo 


8  6.07 


35  4.92 


k/  2  0  7  =v  0 


7b,l  ■< 


._._i. 


iOMt.  IJ 

iOUA  It 

30UJt,  iS 
iOltX,  it 


JU  XT' 


v' 5  8  3.1  9 


)U  xT  6 
Jcxf    i 

MM'  t 
JU-*f  It 
toM"  I  I 
J(/  <f  /  ? 

30  ».p  ;v 

.>>/    *!'     t4 

'>0  .'r-  /5 

>/    t^   /  i 

>v/  iCf    to 

.^  A.r  isi 

^/  H.f  ;. 

.^  *.r  r; 


i^bU»2« 


4.8  0  6.7  1 
4.7  9  6.5  1  • 
4.67  1.83* 

4.59  6.62* 

4.39  6.62* 
4.0  7  2.4  3* 
3.51  7.6  7* 
3.4  1  1.85* 
3.39  4.35* 
::.a9  4.3  5* 

2.7?  5.6  5* 
£.435.65* 
2.38266* 
i:.3  3  42  6* 

£.•5  1  .5  b  I  » 
Z.50.^.4I  » 

.44  y,^B» 

:..44  t  2t)« 

^.43d.i3* 
.  3.^7  51^ 
c.C.'ifv'jS* 

!.-•'>  7. U'« 
l.vi"  .'../to  • 

I. '  1  /..t.i* 


1.645.16* 
25  9.09* 

25399* 
83  T.rff» 


ThC    RlGGS  NATIONAL   BANK  OF  WASHINGTON    D    C 


151 


Hon   Joa   'IcCirthy,    s'orltl   Acco-.ir.t, 
254   G«n»t«   Orflco   Dullirns. 
■•shin^ton   25,    C.    C. 

■AIL 


10.0  3 


10  8.43 
4S.00 

a-25 

20  0.00 

7  3.80 

'     77.73 

30.00 

1  3.30 

9  3.0  0 
t  1^2 
9  6.39 

12  5.00 
46.25 


15  0.00 
I  7.4  3 

78^0 

10.00 

5.0O 

1  4.6  3 

1  P  9? 

81  7^5 


6.5.) 

72^9 

8  0.06 

8.5  7 

7.1  4 


1  02  0 


X^ 


MUCI     4 


Liixii  y  It 


827.t5» 


,/ 


280.7(> 

5  0.80 
5.10 


/    2  8  8.00 


^  por,on 


K    1.07'j.OO 


I  3.52 


1  0  90 


71J0OJ 


MJif       i 

H»>A.r  ;  / 
xxKi  le 

.f.-i  n 
.V  *ji  If 

.,  .ji  ?^ 

49HM  2} 

<,».<M  It 
X>  *J<l  !9 
.x/.tC  I  } 
iOJLi  iO 
jvjlC  20 

>i  jm    i 

%i  mi  I  I 

il  jUi  It 
>l  J»h  I* 
>l  J*M  ?? 

>nui  i 
ii  HJB  S 
31  ILB      9 

intB  Ii 

>/  '•"  1? 

ii  tot  I } 


Jl  '«•/( 


1 t  viy  ?6 

31  MK   J  J 

>,  —  ;. 
)/  m  II 


71  8.7  r* 

670.72  • 
6  6  8.4  7  • 

4  6  8.4  7  • 

3  9  4.6  7  • 

M  f>14» 
,->  n  r  ■>  d  • 

4  7  1  .  ^  • 
4  5  8.2  5  • 
43851  • 
4  I  4.3  1  • 
^Z\  M  • 
3  1  0.2^* 
501.96» 

3  7  6.96  • 

3  50.7  1  • 

«>?^  71   • 

4  7  5.7  1  • 

1  7  752  • 
1.2b2  t><:  • 
«.174.32« 
1.1  1  3.52  • 
1.10852  • 
1.064.57» 

1  ^(  <:.■«■"• 
24690* 

■'"  •"  A"  t 

'   /    \       <  • 

?')n.4i  • 

2  1  8.3  5  • 

204  76# 
'.  ♦ 
?7S.64» 


The  RiGgs  national  Bank  of  Washington  D  C 


152 


lion   .'03   "--Cirfiy,    C.^?-;lil    Aisiar.l, 
234   'onate  Office   BulMln?, 
Bashlnjton  25,   D.   C- 


I  1  JKJLH   A 


1  5.TI:' 
1  2  S.00 


MAIL 


p     ami  It  122.99* 

■^    2  5.00      ^       )<MI2<  t4  7^9* 

t^c.  VJO      i       ii  Ktt  It'  207.99* 


20  7  70 


.00  < 


The  Riggs  national  bask  of  wash  ngton  D  C 


153 


BO.   Jo««ph  R.   McCarthy .   GpoiUl   A/C. , 
tS4  S«nmt«  Offle*  Bldf.. 
teabtagtoD  25.   0.   C. 


LtDGl K    \ 


154 


Hon.  Jostpb  R.  HoCarthy,  Special  A/C, 
25*   Sanat*  Of flea  Bid;., 
■aahlaston  25,  0.  C. 


DEPOSITS 


2.50 
5  5.00 

mi 


1  6.81  -  ^tefe4   ^/l  t*"^  /Uv.  Vvrv-^  Cal  ^ 


6.00 
857 


21.42 

3  5.00 

1  4  0.00 


The  Riggs  national  Bank  of  Washington.  D  C. 


155 


Exhibit  No.  85 


156 


mtmmmKmmmm 


^■.:         I 


dlw  IKiiuir.  Xnriiwal  hlmh 


■•■Q      .U.\-.*.J1C 


i^r.  -v': 


•  ■=/-^ 


(»fciY 


I'-ci-  -Zf  Axis. 

arsas  Mty,   ..o4&» 
3an  i^raJ'cisco,.  Col. 
CldcagOj,  IJllncifl 

..as'ir.ct.ca,  "3.  C* 
DeJlavaii,  ..X8« 

ctiic*ep.  111. 

^'^''"ippieton.  His. 
CON  ^0lronAeJ  IXl. 

CT.tinie,    Ij_L. 


Ci.'ar;;eon  Bey,    .i»» 

.-asku^.'too,  0.  C. 
U.  S,  --of^y  order 

i-iCiUana  fark,  Txl. 
H-.iiaueiphaa,  ha. 
Groat  i>'aila,  Uont. 

0;<ia.-ic:  a  Ciiy^uaa, 
!:cr.!>Et  aa,  .i.  T. 
■  CI-.  .ijTicuu.,  loaho 

ar  el  by  Ute  Sc*,C«l. 
M*  rieesaiit,  .-rioh.  • 
"ra;io  .lapide,  ;.ich. 

CT-  lork  City 


t  00 

^  uO 

1  00 

5  do 

''  00 

5  00 
?1do 


■  "125*  or-'' 

25.00' 

iu.ruo.' 

XO  00 

lu  go 

i«  ■  00 
lo  ou 
iu  «^ 

2o  00 

35  00 

50  UO  • 

t>  uO 

;i5  .uo^ 
577  .  'JU-... 


lA-.-* 


157 


•  .vral  .    i.nt,...s. 
;o3tAi  ■or.e-y    rlcr 

Hart,  -icftiE*" 
^- gi,  idalio 

":■«.■  ^o.r.  -iiy 
..«  .-J-.:  ^'tr 


Ej.  -onus,    -»^^' 
lort  Chc3-.'r.      -   •• 

",anton,   'i^» 

,T««>  -A.  :>»• 
xrr  >•*""?  ,;'^'* 


Z.50 

^.« 

l./J 
5u.«J 

3.0 

jj. '> 
1.' 


:■  . 


.abaci.,  "-''i- 
'.  .5.  or.ry  r.cr 
_o:..icc_^,-r1. 
Pak  .ark.  III. 
Ct,  /jvAc,  -«• 
CslJcosli.rtle. 
ua::  .  tJl'.,  111. 

Jinervtiif,  •■>■■♦ 

attcwr,   ..IS. 

..ashir.cton,  '^.  C 
icEerj-..,  ill. 
I.CB   '-oi-i  CI  IT 
■«-*ae     fork,  ;.-.cn. 

Lj_i»»u;'«Oi  "!•• 

:UirU'nnl,  Com. 

i-owTcrtj  ■■)'• 
rror.t  .J>yal.  ^»« 

_iitra^:cr,    .■!«• 

.  .clii  ■-  "••» 

:«wrli  '.lUJs.CailX- 

rolxir>ii    hi" 

Ant'.«*,  lUii.olt 

.ar.  Xr"irc  ccO|CdJ. 

-,.ii.Uj.^w<ij  r.  c. 

X- ;     rvon,      -iO. 


,„-ji;Oii-, 


Ind. 


i,Ti«r9vi^l»,  Xi». 


,1,^.-55 


M 


V- 


158 


••AIL  OKPoarT  sciP  •  o€PO«rr«o  wrm 

trtjt  i^iggs;  .Rational  ISanl 


JOE 


ZSii^SaDHmJifilca^^allii]^. 


ACCOWT 


».,      my  18.  19^ 


SMOOJMMCl 

Ot  COUPONS 

ir  UGiSTBlB)  MAIL 


Aatloch.  miixl| 2   oa 


I 
il 


n 


,...    ..■■   1 


^  HrawK  »fa*"  ■■■«■—<  «  •»  .W  -.»  •»»  <*•>••  kx* 
WV  M  4M<>«  •■  *•  »««  «.  >akM  *•  Sm*-*  aaaMl  ku«><i« 

;:^  M  M* "~» » "•  «i—'"« »» ••  »-•  *"  *•  r«  " 

M  •  k>  Man^  HI  Mil  *•  Aax**!  null  HI  »m  «  ■»m«it 

^^ISllil  fMM  a^  •<  ••D~'<«"*  rill    iitli  "^  —  taHi^iii 
■   !»«» ________^.^_____- 

»«T    TO    »-l     •«!*» 


Zl)t  ^iqsi  Rational  ^smk 

JOE  igjl'i^fMlAl  ACCOa.T 

DAT. toy  20.  1950  ,a 

cans 


-1 


UNOCUKKEKY 

0«COUK)NS 

ir  uoisniuo  man. 


l>aSalle  Nat«l,» 
Bank, Shi oa^Otlil 


\~i 


1  og_ 


I: 


4 
.^^. 


••  1 

13 

TOTAL    ,                             1   |0C 

159 


NAM--JQK  Jik2S[£"^ndQkL  ACOOW 


Om->«. 


git  S— U  Qffioe  Bmigge_ 
Iter  26.  19^  ,T 


»ocunB«T 
ot  couroo 
iTttGoraoMAa 
Lo«. 

OCOQ        , 

.Qilragn,  III 


-Oa 

10    00 
10     00 

OQ 

00 


Qowaan 

Toad  dxi  HciWDil 


-A.C    O..H..,T    .c*.    .    .«,^,«.^    ,^ 

***" — J'*^  If  ;?^ 


iNOoovt    A^4.   CMrc«« 


rV  ffrfff  V^fM-^  •'  ••*» 


160 


Ccnate  Office  ^*cildlnj^ 


cwT,         J'-'ie 

12.  1950 

<a 

SfsO  CuUFNCT 

y       eoujB 

am 

IT  RtdiTUlD  MAR, 

CHfCuS 

11 

i! 

iote 


,  As, 


:^iicai;o»  IIjU j, 

.  .  r,c!c:-c."  orcer 
iirdr.rton,  i)el«- 
■.hica,:c_,Iil.  _i?. 


3    QQ__ 
1    00  ' 

ioj-«e — 
5.1  00 
<i;  I  00 

IT    00^ 


ll..au;:ee,  .is.,  ' 


— 

5,«y— 
5.  yu 

5!  00 
1000" 

S    00 

j 

i 

i 

■•jja3  t  50 

*   •**■    llX*.  "Om^oilT  CLir  .  DCPOSITCO   WITH 

25li  ;>en*b«  Offld*  Bldg.__ 
r^„      June  J9,  1?50      '"       .^ 


SINO  CUtttMOf 

0«  CCX*f>ONS 

»r  ttOSTUEO  MAK 


MUMS 


Athens,   t. .   1 
KenHworth, 


S«kn  :<Afaelf 

3alti;ore,I' 

!%d±son,    lia. 

!»il7fau}i00,"is»'° 
•* 

C  in  c  i  rjmti ,  0 -li  o 


../^•4   •»  MM.  ■•«    • 


C/3 

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I. 


HU 


■»I4.    Diro«<T    acjr    -    0«ro»IT«l»    WITH 

^I)e  Kiggis  Rational  l^lanb 

•(  lNu%(iift«ii.  S  C 


<;;:U  Sf^ate  <">f  flee  BQiidin|' 
o.^    June  jO,  19»J  ' 


162 


roir  aup  -  ocroMMi  wtrw       J 


-Aft    0«FO»(r    M-ir  -    D«rO«ltao    WITH 


NAM«     JlE     ]iC( 

SfNO^CUttWcf  ~ 

0«  COUPONS 

•r  UGISTOB)  MAM. 


u;j.c£f^,lJLl.  * 
Jtalar'.elphiA  » 
r./vrort,  /.y.    « 

icotcQ  i-Jj&lna/LijL. 21 

Lo3  Ai.ccleSjCafilf.  _5^ 

M-ii,  c. 


163 


I 


v^^'lOO 

^  San  p^ago»Ciaif>      ID  00 


3FECI1L  ACCOWr 

OtCOOKlNS 

IT  (K^STUtO  MAa 

o€cxi  San 

Vev  York  City    ,  ,, 

CM.cAgD,  HI.       i* 

H^Lrose,  lU.    '.  :i 
ErvrettyWash.    * 
H^oston,  TvxAa 
Cklppew*  Falls  fin.** 
CMca«o,  111.    L 
Elkhom,  Wlj.    • 
Utjany,  F.  T.     ^ 
Peatal  Not* 
Rtdgwrood,  M.JlP 
Baltir^re,  Ud.,, 
CllntonTlIl*,  WK, 
nmm  Tort  City  " 


Of^'^ 


10  00 
10  00- 
2  00 
TOO 
90  00- 

50  00 

2  00 

500 

1$  00 

2  00 

500 

12  00 

500 
500 

100  00 

50  00 


1 


■■^  UlUWII 


'  •«FjwiBr«m 


it 


I 


251i  8*a*t«  Offio>  Hldg. 

o>^    s<pt.  9.  :u?'5o  ,^ 

SBCOJUtBCT 
OtCOUKJNJ 

IT  ucanuDmAA 


ChlcagoT^Il 
Was  1  iir\^ton,  D .  C  g 
r!untlng  lon,W.Vfc, 
nuking,  N.  Il 
licer.ali,  »71b.  * 
n.-ral  .irk  IT, 
Ctevcnr  7  .?int,"'R.B» 

Cleveland,  ^  Oliit 
in'iiart,  Ind. 


164 


NAM.    JCETt^BffBiyijegai  Aecow 

2«ai  Sanatc  Office  Bldg 
a,»       October  2.  19^0  ,- 


SB«>CUnENCY 

0»  COUPONS 

If  tECISTiieo  MAK 


5cai4C!are,Tt.Y< 
Everett, Wash.  ■ 


24 


1          MIUB 

CMn 

'25 
•  2 

00*' 
00" 
00^ 

-^2 

-2  !  00  ' 
-2     00^ 

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4 


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LK\ntii  iUUQuA  ^i^iintt 


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25      X> 


■;V^:  'r:4,Ci;,^rjl7. 


-  *»»   ••w^' 


:    oc 


,     ENDORSE    *«.!.    CMfCKS    IN    THIS    M4NNI*: 

/,  .    «..-•   V.mi.<.m/  Ri"* 


105 


MAM.    OIMXrr    H.ir   -    Otfl^HTKO    MriTX 


^lir  UiQQsJ'^iitioniil 

ul  U'jklnnaion.  D  C 


r.ank 


166 


MAIC   DCrOMT  Mjr  •   OirOltTSO   WITM 


^SSlii 


,T<!^  jcPiRfeBtfj^ 


PSCIAJ- 


25k  Sen*t>  Offlo<  Blde^*-^  -'^'^ 
-   January  19.  1951 ,» 


Jipgleton,  Vfl«»J'_ 


jMMndoiup.tii, 


25     03 


50     00 


tOtAW  _     1,V$       '^'1 


>»tf— <i* y  MliMK  iiMli  r^  b4  b«Mf  nxr* 


ClTL  M«,  mTm  im  W  IHHi  ■■•  <Mm»  •!  rtJX  ••  MM. 


•  ■ik«<  »•  'In  •k*>r  I 


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2gU  Senate  Office  3ldg«  '^^^'""-^^ 
^^  gabruary  1?,  1?$! 


»ttCkam«T 

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MUMS         :     cm 

: 

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1 

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1 

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1 ZLSa... 

131  50 


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Mf  «>«  «M*tt  ■•  *«  ft»^  «.  ■■>■  **  iM*-|    —  —  I 

f*M««  IH  •«»«*  .»<«.  a  •  iilllMlllll  H  *•  iMft  *H  «M 

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«<*  IMIM     tM. 


167 


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168 


s»ccutt&io[ 

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min»kde,«ia.> 

Los  Ar.<;«lo?,CaJtJLr 


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ait;r  fii90B  National  Bank 


■(  Su(|ta«Ira.  •.  CI. 
MAINOfFia 


for  your  pretedion  mtion»  •!  cWlu  ta  dtf*d*4 


II  Mni 


169 


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m  MPAW  HJ  ■  HmHW  uws— 


?t.   -a 
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i^c'ji;  7,  Ala. 1 

xUnjtonJ  Va.  ^V{, 1D_ 


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170 


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<k«iAg«ai^.  Mau 


100 


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100 


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00 


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fw  0»i,  Z3.  19SI l». 


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Coral  (kbiM.  Fl«. 


R«w  lorlL  Qitx:^ 

MoblU.  Ala. 
■>w  Toark  City 


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10 


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171 


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u 


) 


J6      >3 


WMi 


M    O. 


dip  SiQ^H  Natimud  San^ 


MAIN  OfFICE 


For  yaw  fiOttfem  andorM 


tv  aManuo  lua. 


Art<l«d 


28 


Tulsa,  Ohkl*hoia  '  J 700 

Lob  *n£elMt.-.^!Ly.'_i  1 25|  l~_ 


172 


mtmisma 


173 


T«l»    DC'OIir    ACCl^TtO    BV 


MO. 


uf  ■LJl•hlll^tlln.  P.  tf. 


row  TMt  cuiDiT  or 


SENATOR  JOE  IfcjCARTHT, SPECIAL  ACCOIL, 
25J4  S«naU  Offio*  Bld^. 


Miqr  26,  1952 


'J.S.\4onalr  OrOar 
■^carsiale,   N.   I. 


-e?  :  00 


10  ,  00 
25  00 
25     00 


^ai-x^ 


MO 

(if  n.ikliinitliiii.  9.9. 


ro»  rut  cncoiT  or 


SiJJAT-R  JOE  lIcCARTHY,  SPECIAL 

'A5C35iir 
2!?l4     "'iJUTS^ OrFTCl  BLX. 

July  15  1?52  ^       ,. 


-?< 

0 

>kA 

rOTAL  • 

174 


F 


oil— »iii»itiH.i.y. 

'      MAIN  CriCK 

■tvtiiM  KM  or  THtt  ncmr 
row  THC  ewcerr  or 

Jot  KeC^rthy.  Biminl  •ft 


»U*M  «W  tB«T  «U  ewfCJCS  AaO  BMFTt  /W(  I 


trans.  d«p.  7/17 


I 


T" 


TOTOt  t 


*x.>>         „52       ^ 


« 


lOtM 


a  a. 


— "     ^^^^■■'^    yr^  .^^T^— »^tMMJ|  M^^— ^. 


l^iAi 


175 


M  O 


i>l  tUuvliiitiiMii.  D  *£. 

MAIN    OF'rtCC 


Cuhblncv  .       ^ 

COIN. 


, .  ,..^^. 


ITEMS  ir-vCn.tiiiS-nM-    -  f- 1- 


ylUUyd^'^ 


24 


TOTAl   »       I 


it 


176 


'^  -tiatSchMXij\jjmt  ■»» 


^fWftWt 


San  Oiaeo*  C«llf •     • 


.  BrQok^jrn,  1  ■  T< 


ni«aBijc»  Arls.     -     ti 


JUilflA- 


TOTM 


awT<»  70B  lacisnir*, 


10 


2 


421 


00 


OB  . 


-     00  2 


«_ 


I 


3C3 


177 


MO 

i>f  ■.■•liiiittliiit    0  If 


roM  Tnc  CKCOiT  or 


_Oci2b<T_3i  125^. 


I 

BrookljTij  ll»w  Tork 

Pittabwrgh,   P«.  . 

Lo«  An^l«e,   C«l.        | 

ArcaU,  C»llf. 

E4cevat«r,  H.J.    ; 
■^  Tork  5^  ■-  T,  , 
Cr«nford^  ^^_Ji• 
■•V  Tork,  Wwi  Tork 
VlehltA 


5 
_^- 

5 
5 
50 

100 

__  25_ 

J_ 


.00 
00 

QC 
00 
00 
00 
00 


50 


00 


Hial*^  .  riorldA 
T«ir.a,  Florida 

a-.ic«€o,  111. 

Appleton,   Wis. 
T&apa,   florid* 
Chicago,    111. 
Waah'ngton,   D.C. 
Chicago,    111. 
Chicago,    111. 
Mev  Tork ,  ll»w  Tork 
Chicago,    111. 
Detroit,   Mich. 
Detroit,  Mich. 
Frldg^port,   Conn. 
?•*%•  Tork,   H.T. 
RhlnrlanLlpr,    Wis  . 
Hlghtstown,   M.J. 
Txma,   Ariz  Mia 
Hlaad,   Arizooa 
heck  HlU,   5.   C. 


Total 


25.00 

2.0C 

5.00 

3.00 

2.00 

50.00 

10.00 

25.00 

5. CO 

i.OO 

5.00 

10.00 

10.00 

2.P0 

10.00 

15.00 

10.00 

2.50 

3.00 


$516.50 


MO 

5lu'  Kiuua  Nafiimal  iRniih 


rot  TMC  y  ton  or 


I-L: 


r"*"- *••'"• 


CuOOfNt 

COi 


•'» 


MS; 


M 


J'e*T.,rlt  .;l^- 


178 


Exhibit  No.  86 


rflSW#sa°n^SDnt£<>n»«;aRr»<«<?^^ 


Hon.  Joatph  R.  UaCarthy. 
SM  S«n*t«  6fric«  Bids., 

•Mhln«ton  25.  0.  C. 

VATT. 


'%w. 

I20.C0 

l.CO 

lOO.CC 

*  ^  f^   r  ••, 

1  >.  '«  .1.  ,1 

^2  3.^c 

1  a.i  ^ 

^.co 

ZIDXC 

*"■  cc  c 

lec..:'^ 

'•  C  i . .  , 

70.00 

ISiOO 

95.05 

4.7 1 

63.20 

57J9 

4.44 

36.78 

50.00 

454.50 

«S.»2 

91.09 

200.00 

11.25 

50.85 

250.00 

80X0 

50.00 

134.40 

77.40 

5.00 

287.00 

50X0 

150.00 

45.77 

t25.C0 

£0.0  0 

.95  Jv 

200.0  0 

50  0.00 

^.25 

22J0 

4  0.41 

76.90 

50.00 


54.05  162.15 


30.00  223.20 


'-1315  SC 


r..»o«.t«                   UK-, 

•AL*MCC 

,o«w;a.v.v- ►^     '• 

/:  '  1  .^  . 

^1^  ^\y^^...^^^^ 

!.10.J.i 

7. ',7. 1,.. 

7  3C.f-.; 

Z'  y 

1.1  ■:.!.'•... 

'  r 

1,Ci:4.5o 

.'      .■    ^ 

:.c.-7.'.,>. 

1.•,^7.vc 

t.iCC.7^ 

\    : 

1 ,  C  •    1  .  V  .■ 
1,C.   1.7> 

1) 

',  1  .7. 

K^  61  3.00         1  9« 

1.944.79 

.MN1418 

1^44.74 

'!  J*M15« 

1.156J9 

^  j*i«15« 

1.115.04 

i    JANI6W 

1.078.26 

;   J*wi9« 

t.028.26 

i   J«"20« 

579.76 

:  J«21« 

507.84 

JAK2218 

455.95 

350.0  0«<M*t  22  « 

805.95 

1  J^231« 
1/400^4     JAM2318 

94  3*69 

JAW26W 

JAN26« 

613.89- 

JANJO'W 

213.29 

ftB   2^0 

130.89 

Kl.3«'0.7a     fte   2i8 

1.224.67 

rcB   S-tS 

1.174.67 

rcn   6 "8 

725.70 

rr!.'  6^'. 

5o0.70 

^'22-0,.  ,^,M 

i^m 

;i  "r-ie-v 

4'>S,7S 

■"•y-^uo 

1 'J  0.75 

.";-" 

r^s.5  0 

1^-1.00  3.38     K-»R    1W 

1,1V8.88 

HA«    2  48 

1.156.17 

'     MAR     418 

1.05927 

MM    5^8 

1.057.62 

Tmi  Rices  National  B* 


or  Washington    D    C 


« 


179 


Hon.  Joi«ph  H.  McCtrthy, 
2)4  Santt*  Offlct  81ds., 

ttihlnnton  25.  D.  C. 


-.JAIL.. 


.-_i_f 


•ALAMCI    ••OUOMT   POI 


63.45 

50.00 

33.4  7 

150.00 

116.73 


27.72 

6.50 

37.SD 

10230 

20X0 

S9^3 

tooxo 

2».75 

12.74 

167.12 

9.1  I 

8222 


iV 


IS 
5JI 

470.00 

10.00 

150.00 
1035 

4.00 

50.65 
54.05 
10.00 

100.47 


2  2.1  t 

t  7.5  0 
1.0  0 

3.20 


20X0 
7.03 

ISO.00 
63.20 


T 


b3.20 
t  0.00 


100.00 

5.25  22320 


162.15 


KAR    0  ^8 

h^7*a — a 

1 

j 

«A«    9« 

5V9.06       « 

MAP  lOW 

446J6       « 

y..  11  « 

414.89       • 

-A"  15^8 

253.89       « 

-"■nis 

137.16       • 

^^  116.73 

•v-l7^g 

253.89       • 

.'   300.CO 

•■«"  1c  "to 

553.0-.       • 

...o?2^8 

526,17       • 

-o26t^ 

474.47        * 

■■  "C-i 

43  6/:  2        « 

)tM«31« 

334.02      • 

*«    |« 

314X2       < 

/ 1,003  J8 

*«    IV 

1.317.40      « 

A«    2H 

1.236.17      • 

A«   548 

1.031.14      • 

y'   200.01 

APW   518 

1.20  I  J»      * 

Af«    616 

81220      « 

»«    648 

A«   718 

WW,      : 

*«<  eia 

47455       « 

Aim   918 

473.50      < 

A«   918 

455X0      • 

A«»1218 

449A9      « 

•  100.00 

^770.00 

V  7  3.7  4 

«w  1 2 18 

923.43      • 

AW1318 

913.43       « 

A«i5M 

763,43       « 

APW1018 

752.48       « 
1,40  4.17       « 

^  661.69 

■W194S 

•PR  JO"? 

1,300.17       * 

"•22 -.8 

1.249.32       < 

^p•26S8 

1.033.12 

■«i27'«8 

1.C23.12 

• 

■^PC    IP 

^.2  2.65 

• 

Thc  Rioos  National  Bank  or  Washinoton    D.  C. 


180 


Hon.  Jossph  n.   KsCarfiy, 
234  Senate  Office  Bid;. 
•ashlngton  25.  D. 

Ma 


x: 


1  0.00 


7.5  0 


5.00 

255 

^m 

1  o.co 

4  0.4  1 

22.30 

74.7 

63.20 

S7JS 

200X0 

76.9 

10040 

sBS* 

Z4M6 

200X0 

10X0 

100.00 

soxo 

SOX 

fOOXO 

S9X0 

600.00  »'' 

24.90 

57.95 

10.20 

16.00 

33.00 

3  JO 

10.70 

22.11 

1C0.0 

150.00 

5.C0 

75.00 

t  00.0  0 

r  r»   /* 

8320 

76.15 

300.C0 

6C.C 

1320 

3.37 

.50-^ 

''?.i9 

'^2.71 

1  0.7 

so.as 

tsoxo 

54X5 

162.1 

laoo 

iSG.c; 


I 


;cc.coi 


.":!""..i 

0»T» 

•OlAMC* 

— f 

\ 

5 

922  65 

005.15 

•^  1.0C.i.3«{ 

•«Y     3  30 

1.'.»0o.D3 

...V    4.^4 

1.500.98 

MA"    618 

lam 

1 

-.>.     7  -  • 

l.^'CT^- 

|t 

•"•now 

1.192.44 

WTH48 

1.092.44 

•^509X8 

NAT  1218 

1,40132 

\ 

MY  1 318 
MTtSW 

1.999.32 
1.342.92 

HAY14H 

1.318X6 

KATI7M 

1.108X6 

NAT  1648 

908X6 

t/1  8.641 
600XO.f 

> 

HAY  2048 

MAY2S48 

808X6 
767.70 

HAT2748 

JUS     1 

78  7.70 
72  4.85 

t^   1.240.15' 

.-.-   1  ^8 

1,965.C0 

I 

./--  2  48 

1.038.400 

i: 

.•.-    248 

1.505.60 

I 

—     .Sh"? 

1.V02.3  0 

t 

—  7«8 

1,76V.4i 

i 

-•■  c.  ..S 

1,£14.4> 

1 

.-     r.  as 

1.106.2.. 

'  '  .''^<..4  0r. 

r  "^  (  A  f,J 

...It  .;• 

:  11 1.^7 

•  '.      .' 

..11  l.'S7 

10X0 

The  RiCGS  N*TiON»L  Bank  or  Wasmiscton    D    C 


I 


jm10«         U&22X.S. 


181 


Kan.   Jo 3 

-p'l  n.  vz:trt>\/. 

1 

254  S 

enito  Office  Bldg.. 
ttshlngton  25,  0.  C. 

B 

ua 

1   . — 

OATC 

»mHM               «  KAa  aA          m           _ 

Vft.ftO 

•.to 

^ 

JUl1t« 

t.4l7^# 

tAl 

IIJS 

99.00 

9SX0 

•  250jOe 

JIM21« 

MiZW 

1.4l9jftt 
1.«S4^« 

19.00 

JU<22« 

1^«I.S« 

5.00 

JU«2S« 

\J5ltJt9 

100.00 

JM24« 

1.557^8 

21X0 

JUN25« 

1.49  7  .£« 

'  6.9S 
/  1.291.91 

JU«2t« 

1.49t.2« 

JW29« 

1.449.27 

66.26 
27.29 

JU<30« 
-«*•    1M 

kimi 

^    2« 

i,*zijii 

• 

"^250X0 

/475X0 

■u.    6« 

3.S4«j»9 

• 

30  00 

'I8i8 

8.63 
100.00 

150.00 
25.00             100.0< 

*L   7« 

4oV«!o*^'  .  • 

20.00 

100.00 

-w.   818 

2.(0940 

^   225.00 

JUL  e«8 

2.634.80 

5625 

33.77 

U.    9M 

2.7i3.83 

100.00 

150.00 

2.95               20.0< 

^',^;| 

iil^^l 

/"  9.00 

ja  13«« 

2.469.26 

I0d.48^ 

itIIJI 

566'.06 

25.00 

t.7t>3.C0 

JUL  19  1? 

13.0  0 

40.C0 

bC.CO 

>X2t18 

467.06 

10.00 

3S.C0 

14730 

'X  ?•«? 

4  2  2.C.C 

25.00 

-■^Z** 

2743« 

20.00 

^2a« 

a*.30« 

init 

v  1,040.15 

AUC  2« 

1.269.7  1 

50.00 

MX   9V 

1.2 19.7  1 

40.41 

AUC    4« 

I.179J0 

37.85 

*JC    4« 

1,141.45 

Thi  Rig««  Natiomal  Bank  or  Wasminoton    O   C 


182 


t.co 

100.00 


i 

orri-.j  311- 

njlon  23.  D 

»*Tt 

""    tijo 

'     03.20 

100X0 
lOJO 

20X0 
21^0 

soxo 

I.I5SC 

7tJ0 
20X0 
90X0 

79^5 

3X0 

150X0 

150X0 

1.00 

9.00 

1  50.C0 

ISjOO 

10X0 

20X0 

mi 

46.09 

50X0 

>?iS? 

'm 

tXJ 

2  1.65 

|50.0G 

5X0 

50. CO 

20_.(}0 

12-50 
.90*. 

»exo 

6320 

\*A1 
150.00 

5.6  0 

20X0 
7  7.00 

34Xi 
C2.36 

H/^v^. 


•AUIMCC    •ItOUOHT    POffWAMOt*/'' 


iocx<j 


40.32 


y  see.oo 


1^  4«iC.C0 


*uc  6  48 
MJC  918 
MJC10W 
«UC1048 

MJC12M 

liir  1  «« 
*uci7W 

ill  *•?<)* 
w:2  4« 

A.;c.  'O  1" 


1.035J5  • 

B  6  5.99  • 

626.15  • 

625X0  • 

746.10  • 

654.6S  • 

451.65  ■• 


VIC 'It? 
■<■»•  715 

r«»    7  i« 


i<  1  "^  0  0  r,  I 


c  en 


\y 


694X9  • 
669X5      • 

52  9.69  • 


514X5 
504.65  • 

464.65       * 
S.^4.d5       • 


'.*4ii 

71  b.51 

i,7«;a.66 

t.3o4.62 

1.566.66 

1  220.01 

1  0?0.C1 

1   170  .CI 

o^6^i 

a:^5.2<> 

hf.<  .\7 

(  \hi\ 

■  1 .  . '  I 

.-.  7/71 

C  7  1 .7  1 

7  -,  I . ;  I 

.  717  1 

:  ;  1 

'    /  ?1 

6626  ^!1«  Wi^      t 


Thi  Nioaa  Nationm.  aANfr  or  Wa»hinoton   O  C 


i8;i 


..   Jise.ih  R.  ee''«rt»i7. 

2;i  r^iiic  Off'.':-  "ij  •.. 

ta3>ln-lon  25,   D.   C. 


t9.40 

100.00 

20X0 

100X0 

2  0X0 
100X0 

200X0 

150X0 

B9^0 

40X0 
25X0 

150X0 

vexo 

67.70 

15X0 
t25SC 

100X0 

20X0 

100.00 
50X0 

20X0 

50X0 

i5i? 

i$jt8 

50.B5 

100X0 

100X0 

7.9  5 

25X0 

100X0 

5  4X5 
10X0 

100X0 
162.15 

12X0 
20X0 
50X0 
9BX0 

50X0 
15.00 
50X0 
6320 

125 
100.00 

t  (TOtTtf 


•AbAMCC   •«OWO«<T   rOMMWD  I  > 


-1 


200XO 


7i0:| 


/  1.040.15     XT     i« 


/431.1  0 

/  250X0 

/     50.72 

^^407.50 


^, 


75X 


1,059.65 


23.69 


Tmc  Rises  NATIONAL  Bank  or  Washington    O    C 


XI     i« 

1,76524 

XT     4U 

06524 

XT     41« 

2.039.1  1 

XT     5<J 

1.913.1  1 

XT    6W 

1.293.1  1 

XT    718 

1,143.1  « 

XT    tM 

1.11240 

3C  1118 

656.40 

XT  ni8 

616.40 

XT  12« 

591.40 

-CT  12« 

574.40 

oai3« 

575.1 

■a  1 3 1« 

1.00625 

XT  Hia 

66625 

XT16« 

71625 

XT19« 

»«(^9 

0CT19H 

Bli^S 

oa2i« 

91129 

X»21« 

»47J7 

XT25M 

9S7J7 

0CT25« 

90637 

XT27« 

855.72 

XT2B«I 

555.72 

XT28« 

66322 

XT28« 

♦39X7 

NOV     |« 

604X7 

NOV      1« 

1.663.72 

NO*     4« 

1.601.72 

NOV    8  49 

NOV    6  S8 


/8N0V 
i8N0y 


1.2^0.47 
I.10»27 

9  1.132.96* 

JC  1.0  9  0.52  • 


10 


990.52* 


184 


2M  Santte  Offic*  B1J>:. 
taahlneton  SS,  D. 


1 


.901 

20.00 

50.00 

4.00 

150.00 
3.60 

150.00 

1S0i)0 

1.00 

21.43 

100.00 

76.90 

200.00 

iJOO 

34 

19.44 

4.«5 

U4 

7J0 

4220 


3  9.25 


•ALANCC     •WOUO^T     FOnWrAM 


I  00.00 


10.88 


22J0 

40.41 

5.00 

45.21 

7.25 

33.60 

3.00 

2.00 

12.10 
5.00 

3.37 
9  8.00 

1  1.56 

100.00 

90  30 

2.60  2 
1  ?03 
1  0.00 
1  00.00 

4  7.3f. 

102.00 

^..4  0 

10  0.00 
101.00 

^. 


2  5  0.00 


y 


io:^j  J2 
48  mj  u 
ia^z'i  IS 

48  Wi  18 

48  ;m  19 

49  Wl  19 


99  0.52  •S^ 
989.62  • 
96  9.62  ♦ 
91  5.62  • 
515.62* 
51  2.02  ♦ 
361.02* 
339.59* 


49Wl2i  162.69* 

4PNW  22^^^  37.31  <  00 
49VOi  23  71-^38.31  00 
^J>N0V2/>w^     58.69>(a> 

49W1  ^^'Jl^  63.34V  00 
.'9^ZM  26  186.66* 


100.00 


?  O.o  1 


49KJi  29 

184^2* 

/' 

49a:c 

176.32* 

1.04  0,15 

rfPDEC 

1.216.97* 

^ 

49Crc 

1.124.64* 

— 

— 

4»iJfC 

£ 

1.05<;.93* 

1.004.47* 

065.S7* 

^  0  t  R.O'S 

aTc 

<; 

.    1..Tn.T3.T* 

..'/  r;c 

7 

1.1  70.r.4» 

£■/..(. 

f 

970.70* 

e 
to 

977.1  4» 

<■:    c 

n 

14 

r,--.  1.3  5  • 
,'S77'^o* 

Tm(  Rioos  National  Bank  or  Wasmimcton.  D   C 


185 


Hon.  Jostph  R.  nc''»rthy. 

254  s«n»to  orrie*  nid^., 

■•flhlngton  25,  D.   C. 
■Alt 


>t»0»<T« 


•*kAI>»CC   ••OW«MT 


~yiry.Mr 


^iXC  1* 


97»6«  • 


4.M 

A.AO 
IOOX)0 

S4.79 
14.62 


50.00 


'f.*(? 


140 

1.25 
14.31 


25.00 
10.00 


31.85 

1  4.00 

150.00 

t  00.00 

10  0.00 

1  OO.OO 

?.80 

?  90.00 

20.00 

5  0.00 

.77 

1^66 

749 

6.00 

5  4.05 


50.85 

10  0.00 

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239 


Exhibit  No.  89 


Joseph  R.  McCarthy- 
Gain  or  Loss  in  the  Sale  of  Securities,  19li3 


Date  of 

Date  of 

Security 

Purchase 

Sale 

Proceeds 

Cost 

Profit 

100  Intl. 

Gt. 

Nor 

6/52 

5-lii-U2 

3-I-I13 

m,  599.95 

»2, 250.00 

»12,3li9.95 

20     " 

n 

N 

n 

11/27/U2 

3/*^U3 

3,11U.93 

1,031.25 

2,083.68 

25     " 

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1,275.00 

3,6U9.89 

10     " 

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11/30/12 

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1,970.00 

512.50 

1,1457.50 

8     " 

N 

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It 

' 

1,575.92 

Uio.oo 

1,165.92 

7     " 

" 

II 

ti 

12/3/U2 

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1,378.98 

358.00 

1,020.98 

30    " 

It 

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It 

^ 

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U, 860.00 

1,537.50 

3,322.50 

10     " 

n 

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1,620»00 

562.50 

1,057.50 

2     " 

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2114.00 

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862.50 

1,567.50 

6    " 

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337.50 

63L.50 

5    " 

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B 

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275.00 

535.00 

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6,U80,00 

2,200.00 

li,280.00 

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12/30/U3 

6,80U.OO 

2,290.00 

l4,5iii.oo 

20  Ctot. 

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3/9/I13 

12/31/U3 

7,3liO.OO 

U,631.25 

2,706.75 

%  59,20U.67  $l8,61i3.00 

$  UO, 561.67 

240 


Exhibit  No.  90 


Joseph  R.  neCurtisj 
Funds  Received  From  Wayne,  Hunner  &  Coapany 
Chicago.  Illinois 
In  19lJi. 


W 


Date 

Cherged  to 
Account 


5/3/Ui 

V22M 

3/2q/Ui 


inount 


3/1/U* 

1        500.00 

3/25/Ui 

500.00 

Ij/lO/Ui 
5/l/Ui 

500.00 
500.00 

5/3M 

U,O20.55 

5/12M 

1?6.55 

• 

603. I45 

5/2VU4 

1,000.00 

5/27M 
6/6M 

1,000.00 

2,000.00 

6/7/a 

3,000.00 

6/28yU 
7/6/Ui 

2,500.00 

1,800.M 

7/ioM 

5,500,00 

7/lVUi 

1,000.00 

«/ 

3,000.00 

8/7M 

200.00 

8/ioM 

500,00 

lD/6/Ui 

653.00 

e  28,978.55 

U,100.00 

500.00 

5,000.00 

500.00 


DispoBltion  Undetennined 


GoTemment  Bonds 

Deposited  in  Citizens  State  Bank,  Shawano,  Wis. 


I  lj6,078.55 


241 


Exhibit 

No.  91 

Joseph  R.  hVcCarthy  -  Loan  Account  -  Appleton  State 

Bank 

C  r 

edits 

Date 

Debits 

Source 
Determined 

Source 
Undetermined 

Balance 

2-13-U5 

$     1,800.00 

1 

% 

% 

7-13-15 

50,086.65 

7-l8-li5 

23,876.U7 

75,763.12 

8-11-U5 

3,61*li.23 

8-21-I45 

5,750.00 

8-30-15 

827.36 

9-  5-U5 

787.37 

6U,751*.l6 

10-11-15 

1,698,92 

66,153.08 

12-17-15 

U3,523.1*l* 

12-21-15 

2,000.00 

20,929 .6U 

_/ 

565.00 

20,36 1*.6U 

u 

11*9,176.06 

169,51*0.70 

12-26-15 

.70 

12-28-15 

713.80 

%  226,65B.W 

1  U7,13B.17 

%  10,673.73 

1  168,826,20 

B*l*nce 

*  168,826.20 

» 

% 

1 

2-ll-lj6 

1,000.00 

3-27-lv5 

202.83 

170,029.03 

U-3-I16 

5,390.97 

J 

2,715.21 

U-  U-146 

5,31*1.09 

l;-8-l46 

5,3lA.09 

U-11-1I6 

2,720,27 

U-12-1^ 

2,695.3i* 

U-lS-lj6 

13,290.58 

_/ 

2,720.27 

129,781*.21 

U-17-l<6 

5,000.00 

12U,78U.21 

U-29-U6 

2,620*52 

5-1-1*6 

2,615.1^ 

5-  2-li6 

2,695.3U 

5-  3-U6 

5,51*0.58 

5-  7-1*6 

5,1*90.67 

5-13-U6 

5,71*0.07 

100,051.57 

5-23-lj6 

562.5U 

J 

1,868.38 

7-20-lj6 

9,000.00 

8-23-1*6 

1,000.00 

8-27-1*6 

2,675.65 

8-30-1*6 

2.500.00 

1,500.00 

9-  3-1*6 

3,500.00 

77,1*1*5.00 

9-  9-1*6 

3,175.32 

9-IO-U6 

l,67U.9l* 

9-11-1*6 
9-21-i*6 

3,300.25 

791*. 1*9 

68,500.00 

I2-I3-I16 

1170,029.03 

LU.6UU.66 
i    B7!772.63 

i    2B.Wi.06 

*     53,B55.31* 

242 


Data 


Balance 

U-25-U7 

S-12-U7 

10-  l-hl 


Balance 

1-  3-W 

11-13-U8 


Balance 

1-  3-li9 
12-31-U9 
Kiy  to 
Deo.incluaiTa 


Balance 

1-6-50 
1-11-50 
1-12-50 
1-26-50 
11-27-50 
J 

12-Ui-50 


Balance 

2-  6-51 
5-25-51 
6-27-51 
7-17-51 
8-  1-51 
9-li*-5l 


Exhibit  No.  91'A 

Credits 


Debita 

I      53,855.3U 
6U.01 


Source 
Detemlned 


Source 
Undetaniined 


$      60,1*97.00 


%      00.1497.00         % 


%     51,3149.38 


%      51t3l49.3B 


I      l48,762.U 


1,000,00 
6,905.15 

l>2lt2,U3 
?'ll47.62 


1,312 .50 

6.39 

l4l6.50 

262.50 

I4I2.81 

38,68 

137.89 

»     2,^87.^7       i 


%     14B.762.U 


762.U 

1,000.00 

1,000.00 

82.86 

917.114 

145,000.00 
I   UB;762.U 


Balanea 


11*9.29 

826.10 

\ 

53,915.35 

1        li*5.25 

f 

826.1S 

«     52.9U.56 

% 

52,910.96 
20,000.00 

1 

12.ia16.96 

1 

%     52,9143.96 
72,9143.96 

1- 

72.5U3.56 

%   12.ii5.56 

\ 

- 

i     6d.l45?.M 

%     51.3l45.3B 


%      148,762.11 


i     -  0 


l-2S-^2 


I       12,000.00 


%      12,000.00 


243 


244 


245 

ExHiHiT  No.  S>4 


NoTember   ?8,    I9U7 

Senator  Jostph  B.    MoCarthjr 
Senatt  Offlo«  Building 
Washington,    D.    C. 

Dear  3pi>atort  1 

I   am  again  compellad   to   write  you   with  refrrenca 
to  your   $^3, 000.    loan  whloh    Is   held  by    the   bank,    eeourrd   by 
oollataral.    iou  no  doubt  are   familiar  with    ;he    -^uotntlong   on 
this   collateral    and    that    the   margin    la    under   ^C$,    which   you 
will   reoall,    w^a   the  margin  agreed   upon  when  ve  made   the  loan. 

The  Dlreotore  haTe   euggeeted   that    I   tn>te   etepe 
to    eell    the   oollaleral    and   pay   the   loan,    but  before    faking 
•uoh  etepe,    I    thought   bpoauae  of   past    relatlonahlpe    I   vould 
write   you   flret  an1    eee    If    thrre   vere   any    eutrp^ptl'^ne   you 
sight   have,    if  you   could   arrange    to   h-ive    thle    lo  .n   reduced 
by    between   $15,000.    and    J^'O.OOO,    I    aa  'iJlte   eure    I   c-uld 
oonvlnoe   tne  dlr^^ctore   to   continue    to  cnrry   ihp  loan.    I   thought 
poeelbly   vlth  yur   contact*    It   night   be   roeelble   for  you   to 
Bake   such  arrangeitente.    In    the-  event    that   the   r-irtlee   you 
Bight  be   In  a   poaltl-n   to   dlscaee   this   matter  with,    haven't 
the   re^dy    c.nah   they    might   have  collateral    and    I   c^uld   aiake 
a    separate   note    secured  by    euch  collnternl      and   on   thle 
particular  note   you  probably   coul'5    arrange   to    pay   between 
$200,    and    $300.    a   ocnth.    The  bftlnnce   which   you  voul'l    ptlll 
be   owing   us    could   be   left    Intact    for   the    tln-e    being.    It   rrlpht 
be   possible    to   Rcoept   yo\.r  note    for   $15,0'^0.    or    fC.OOO.    If 
•Ajne  WRS    endorsed   by   a   party    fjrnlshlnp  ue   with  a   financial 
statement   whl->h   woul  !    subetant Ifi te    tne    endorseir.ent. 

I   ait   golnp    to   ASA   you    ns   a   per  eonal    fnvor   to 
adTlee   ae  ae    soon  as  poselble,    ««    I    aa    r»nlly   on   the    °pot. 

Vilth  kind   personal    regards,    I   aa 

Yourp    vrry   truly 

President 
NASlH 


246 

Exhibit  No.  95 


Jr.nury   '4,    1949 


-.fii'LDr  Jo.=  e:'ii  '^.    .  o'^artiiy 
'-r>;i''tn  Office  -ulldlng 
■  =  .--..inrt-.n  P5,    iJ.   C. 


>  •  ■  r  J  o  < 


Juet  to  brlnr^  yoj  up  to  d-^te  en  your  ICTne.  ^he 
.'.r.jnr  el  note  hr>B   been  ch  reed  off  our  books  at  the  c"lrectlon 
of  th»»  --'nXlnp?  -'epartir.pnt.  Ih?  balance  ~ue  on  thlg  note  after 
foductlng  the  -il.OOG.   eaboard  (ilvlden--?,  I3  :G,55"?.lU.  '^hen 
the  7C0  shnres  of  C  ntrp]  '^f  ^"^eorpl,-;  comrr.on  etock  le  sold,  it 
le  cur  lrit(^ntlon  to  .irt^iy  the  oroceeds  to  the  «runiel  note. 
Zne   price  on  this  stock  h:'fi  b^en  b-t'-een  6-3/4-  and  7«  -^f  «• 
ore  succeesfjl  In  selling  at  7  this  will  brinf?  -^rrroxi.xately 
;*U,90t:.00  Tni  there  vill  then  be  ."  balance  of  approximately 
»j.,oOC.  then  lue  on  the  '^runoel  note. 

Tap.   nrtount  d'.ie  on  the  other  two  notes  le  v5?,9^3.96 
ru.Q   there  not^s  e.re  pec  ;red  as  follows: 

5  c  irity  pl.Tced  .n?  collateral  by  l*-r.    Klerm.«r: 

iCC  sh    -(vaboard  l,77«i.CO 

7C0C.:ent.    of  Sa.  j>se   of   59                                                U9G.OO 

10000. Cent,    of  CJa,  ^e   of  59                                                 65c. 00 

50  Bh  Hecla  61?. 50 

JLOO  8h  3urroU(jh«  l.^s'J.OO 

3CG  6h  Jerber^s  h^PJ^.OO 

5)0  ah  General   Finance  30O.OO 

>*ortn«pe  3,  goo,  00 

■iaTln.Tis  Account  10,000.00 

Seorltrlee  which   ^re   ovned  by   youj 

ISOO  sh  ■-: eaboard  26,625.00 

450  9h     "        "  6,750.00 


Cftsh  4?,Ui 

Total  561869^93 


^ 


'^-C','-:>f»K,.' 


247 


JnnuHry   U,    igUq 


Ho  'nrt^y   ?, 


'<lth  both  your  coHntnral    nnrt   thnt  of  R«y   Ki«rmft« 
t^.e  T.^rpln  1p   only   7*1    so  you  can  see  that   eoaethlng  will 
h"ve  to   be  ^one   lmra»dlat*ly  with  reference  to  bolstering 
t    is   coll'.erni   or  pnylng   the   loans, 

I   vas   In  Chlcarro  .ind  dlsouesed  with  the  Continental 
thp  iTi'^tter  of  hnndllnf^  the  oomn'Odlty  account   as  oollateral. 
Tills   belnp  n   m'-rglnnl    r.^^crunt,    they    say    there   la   no  way   In 
vhlch  thle    cnnnbe   h- ndled   r.p   coll-^ieral   -^nd   they    doubt   very 
mjch  if   even  coTiraleelon  ^-roknra  would   recoj^nlre  an  neslgninent 
on   such  an  n^-count,    for   the   r'^^B">n   thnt    If   the   mftrXet  would 
dx  jr   rnrltUy   ti.fty  wouJo    only  be  able   to  protect   their  own 
Inl-reet,    1   hope  you  will   le  ;iblf^   to  arrange   eomethlng 
within   t.'-i?  next   few  nays,    =0  ve  won't  be  obllped   to   oell   the 
c-Til   ter,-l, 

"j  th  Aind   regar<\8,    I  nm 

ifour*>   very   truly 

Preeldent 
Hi. . ;  H 


248 

Exhibit  No.  96 


,.1,.N 


8«ptMb«r  29.   19*^ 


Sanator  Jeiaph  R.   MoCarthjr 
o/o  Hotal  AppXeton 
Aprltton,  viBoosaio 


Ovar  Joai 


Last  weak  wa  vara  flnlahtkl  with  an  examination  by 
tha  Btata  I^apnrtaant  and  they  placed  jrour  note  anAorsr-d  by 
Ruaaall  Arundal  on  tha  objeetlonable  llet,  m>>anlng  that 
we  either  muat  gat  the  note  paid  within  the  next  ten  daya 
or  obarge  It  off.  Of  oouree,  when  It  oonea  to  charging;  It 
off,  it  would  aean  imaadlataly  handing  It  out  for  ooll»ctlon. 

Thay  were  vary  such  Inalatant  thnt  we  take  the 
$10,000.00  aavlnge  acoount  of  Kay  Kiermna  on  payaent  of  the 
nota.  I  as  lust  giving  you  this  so  you  can  see  that  thle 
neada  your  Inaadlata  attention. 

Vlth  kind  regards,  I  aa 

Xoura  very  truly 
President 


MSil 


249 

Exhibit  No.  97 


JanuAry  19,   19*9 


senator  Jo-tph  R.    noCartlijf 
senate  Offioe  oulldlng 
'  cs.Tington  .?5,    0.   C, 

'■9'^r  Joei 

In  reply   to  yrur  letter  of  January  ir>th,    Xh» 
nl.'  v»y   In  w'-ilcJi  v^  o^uld  gl»p  you  credit   fT  the  r->n«» 
■  iilrh   If   h-l.-^    for  future   Int^reat  la   to  endorae   It  oa  th« 
f^rlnclpnl    of   fie  note  and   raduoa  the  tmnunt  of   the 
Ind^btedneee.    '•>e  o«n  very   ^aelly   cut   the  p^rcenf^ga  by 
;    '•  Ing  t'le    '.IC.OOO.CC  in  Ray 'a   aavlnpf   "ocnunt   ^nd    endoralac 
It  on  the  note.    Ifru  probably  c^uld  dltoune   thlr  with  Hay 
.1'   yoj  could   then  p=.y   hlu   the  Intrraat   Inatead   of  tha 
•  inX,    In  re-figuring  your  ooll'»iep«l    this   inrnln^  'ind 
nlv   n  •  yn.   th?  tcn-*flt  cf   th.-   offer<»d   nrlca,    the  t^rirln 
1-   l'':t  Plus. 

I    '-ir.'z   .t-.ow   Ju-t   hr)>   f    "-xrvf"   Ty«elf  with 
ref^r^noe    co  your  lorji,    *>ut  fj^  b/ink  exr<nlner»   were   very 
Inslftent  vnaa   tney  dlaouiaed   the  loan  with  the  .^Ir^ctora. 
tait   this  margin   ba   Increased   to   20%  and  hald   tnera  nt  all 
tlitea,    or  they   w<*re  to  h.'^ve  the  lo«n  p'»ld    In  f"ll.    It  would 
neeffl  to  aa   thxt  you  should  go   to   soaa   friend   of  yours  And 
try   to   convince  him  that   If  you   ever  needed  any   help 
financi«ily,    this  would   be   the   time   thTt    it  woul-".   ba 
nrpreclfltai.    This  loon  la   out   of   Ty   control   now,    "nrt   'ro« 
Mere  la  I   oan  only   take  orders. 

I   will   expeot  to  hear  aoaethlng  very  definite 
froB  you  vllM.n  the   - -xt  ''ly  t    '••o. 

'■1th  kind  rafprda,    I  aa 

Yours   very   truly 


Prefiidant 
MAStn 


250 

Exhibit  No.  97A 


Jkvomxj  25t  19it9 


Ur.  lUtt  Schub, 
President, 

AppletOR  Stat*  Bank, 
Apple  toDf  m.sconsin 

D««:  Uatts 

Just  recelTod  your  letter  In  regard  to  ^  aceomt* 

I  can  fully  appreciate  your  position  that  tha 
■argln  aost  be  kept  up  to  iOf.    I  aa,  therefore*  arrto(lng 
to  either  get  caab  or  additional  collateral  ao  ae  to  faring 
it  above  that  figure.  Howerer,  I  aa  leering  today  to  go 
to  Kaneas  Ci^  to  speak  to  the  Lumber  Dealers'  issodatloa, 
and  on  cy  vajr  back  have  to  apeak  at  Toledo,  Chlo.  This 
■oana  I  '■ill  not  get  back  to  Washington  until  either  aoaetlas 
Saturday  or  Sunday. 

I  mnder,  therefore,  if  it  will  be  agreeable  to 
you  that  I  get  this  out  to  you  not  later  than  Monday.  If 
thl*  la  a^TeeablOf  no  anea«r  will  be  neceasary.  Ho»ef«r, 
If  you  Hist  hare  the  additional  collateral  before  that  tlM« 
Matt,  than  I  wish  you  would  call  Krs.  Baspton  in  ^r  of  flee 
and  ahe  will  get  in  touch  with  m. 

QhtU  Z  ■••  you  —  good  lack* 

yourSf 


P.  S.  1^  uleera  arm 


IteCMiam 


251 
Exhibit  No.  97B 


rebniary  H,  1949 


Senator  Joavph  R.  HcCartby 
Stnatc  Office  Building 
Washington,  D.  C. 

Dear  Senator, 

With  further  reference  to  our  telerhone  cniiTTfi.-'tlon 
cff  yesterday,  the  total  aeount  of  oollnfrnl  iecurlnf  y^ur 
notes  (Inoludlng  the  collateral  depoelte'  by  Hty  Kl.Ti'a) 
afflounta  to  5'>6, ?57«00.   The  totnl  amount  "lue  on  y^jr  n"te« 
li  152,9^4.00.   In  order  to  bring  your  collnteral  u-  to  « 
20,'t  margin  It  Is  necessary  that  you  derorlt  an  ^ddltlonnl 
#7300.00. 

Trusting  you  vlll  be  nblf  to  at' Just  this  mttT 
not  later  than  next  Tuesday,  we  nre. 


Yours  vry  truly. 


President 

MA3  :K'. 


.^ine  ?,  I9U9 


Sennt  r  Joseph  K.  !'oCarthy 
5ai:rt<»  Office  '^sliding 
'.'•shlnrton  ?5,  ".  C. 


2 ear  Joe; 

In  checking  your  collTternl   thle  aornlng  1  find 
tlvt  the  T!ilu»  tot... Is    ;6l,4?3.31  and    the  notes  hflil   by   the 
'■an>,    ..)t  1    t5^'»}  '♦.!;7»   *^roai   th   se  fli^jrca  you  cin  fli-ure 
•>  1  f.e  ..-.rgin,    '  hlc!:   is  ;iov  nl    ■  j  ulnt  wii'  re  unlesa 
'  )riet:\ln/]  lu    ion»  itii<;clately  v.e  '.'111  h.-'ve   to  offer  the 

-  '   ■-  '  for     f:   1*, 


iii.a. 


ce  h«»ir  from  you    -t  once. 


i'oura  very   truly 
TcelutiAt 


253 

Exhibit  No.  98A 


^' 


ss^.'js^—  :=r;==js.     Qicdfa^  ,l»ta<—  >AmM4< 


J«M  h,  19ii9 


Mr.  liaU  ftcluA 

Applcton,  WlsoottfBlB 

Dmt  MbUi 

I  hkT«  Jwt  x*o«tTwJ  7w»  l«*t«r  rf  J«M  a« 

I  not*  th*t  U»  BOU.  l»ld  ^  th.  b«k  MT.  f«y.»>?Wl  rf  tgy.OOO 

•nd  «»•  ooii»t«i  161.000.  i«  r>«  to«"f  «»>g»«^  'r;^r*r  **• 

not*  open  irtUch  I  h«»  bMB  p«yli»«  lao  P* J-f  •     ^  iS^n.^ 
Able  tTlontUw  pnylac  »t  l*»»t  thrt  auh  wtii  tM*  obll^tla* 


I  vondn-.  Wktt,  if  flDdw  til*  «lroqii»ti«>*«  1*  w»«M  *>•  ^  __ 

t*  h«.  thi*  nit* .  •hioh  I  b.ll.T*  rtlll  t»t1.  -YT'  r?**^^  / 

tr>Mf«rT«l  to  ooi  of  ti»*  oti-r  b..k.  wltboct  ooll*t«*l  la  Yt«  ^ 

of  th*  vmpmA*  Wifl.  -d;jth«r*».     this,  o'^^TT*''^  ^ 

rat  «a  ISSoy  "i**^  of  K*  «»  tto*  b*l«ii**,  brt  1  o«»  aato  ««• 


I  too.  It  1.  Midof  *  h*n  of  •  i«t  «f  y^,^,*7^,.,..  z„  _ 

«d  if  7W  <«  PO.^Kly  *«*  thl*  ■*  -  to  r»T*  tl.*  16,000  ««W 
ft«i  tiw  ohli^tlaB,  it  wmld  aM*  th*  .ituatlm  ti  '■'"^■i^  i, 

S«iio.  pollay  -«l»-d  to  it  ••  c«n*t*r*l  i«  ojj.  I  *«^«^ 

STsi^t*,  tM*  obll^ti«  «t  »K»  p«  ■oBta^wU  b»  <**•  ««• 
of  b^on  tlw  wd  of  tM*  t«>m. 

fc..  te.  it.  iteu,  «»«'t  j«t  j-dA  "  ^ '  ?:t  SS2  !^J£f 

kno*  hw  I  *»U  b*  »hl*  to  r.t«x  tb*  '■**'  r2;«1.22t  Z 

{tat  boiMrttUy) 


H^,^  I  y***  iieiBiBi 


254 
Exhibit  No.  98B 


Stptember  ?C,    19H9 


••alitor  Joseph  A.  H«Cartb)r 
'«>a0hlncton  ?5,   0,  C, 


^•ar  Jo«i 

Wt  haT*  Ju«t  b««n  «XAirlned  by   Che  F«d«r>tl  Derofllt 
InaurAnot  Corpomtlon  and  th«  riu«atlon  of  your  Iw.n  r<>09lvi><l 
oonatdarable  attention  and  oritlol^a,    Th**  ^xarlnert  oannot 
understand  how,    in  tIcw  of  prevloue  demands  nnde  bj  thi>ffl  nnd 
the   State  Banking  •^epartaent  that  your  loan  be  reduced,    th.->.t  I 
have  taken  no  ."Stlon,   They  told  ne  In  no  uncertain  t°ms  that 
dlreetloae  of  bank  exaalners  are  not  to  be  dlera/^nrded  and  -^njr 
further  delajre  In  shaping  up  this  loan,    it  vili  be  itXtn  - ut 
of  agr  hands.   They   *e9a  now   to  point  their   Kuns  isore  at  ae  thin 
at  the  loan  and  hare  aade  it  a  Very  unootnf'^rtnbl«  situntt'^n  for 
. ae.   The/  have  bluntly  told  ne  th»t  a«  in  official  of  th**  b'nk, 
I  bad  00  ri^t  to  let  oi^rsonal  feelings   ent*r  into   thip  loan. 
and   they  >foalii  be  ooapellisd  to   oonslder  that  I    im  h-^n^llnt*  this 
loaa  a«  a  pereooAl  aattar,    and  that  I   ais  f  .ilinc;  in    ny  duty  ae 
an  offloial   of  this   bmk.    They  nsk  that  aup- leroentary  to   their 
report,    I  writn  then  shortly  on  what  has  been  done  in  making 
this  loan  ooaply  vith  their  demande. 

TIm7  epcoifloally  direot  ae  to   tee  that  the  loan  ie 
reduead  rather  than  obtain  additional  ooll.iteral.  they  called 
attantioa  to  tbe  f«ot  that  in  the  past  we  took  on  a'lditlonal 
oollataral  and  on  praotioally  all  ocoaslone   the  oollater-il 
iaaedlataly  dropped  in  value.   Tbey  Inn  en  ted  that  they  would 
not  be  eatlafiad  with  additional  oollateral  and  insiated  on 
prompt  and  aaterial  reduetion  of  the  loan. 

Beoaua*  it  ie  neoeeoary  and   litrfratiTe  that  I  report 
very  shortly  aa  Preaidant  of  th*-  bank  on  what  action  I  hav* 
taken,   plaaaa  glva  this  your  immediate  attention,    thus  not  only 
proteetinc  ■•  but  the  bank  froa  further  serioue  orltlclsa. 


with  kind  refcarda. 


NAtll 


Xour^  very  truly 
I>r*eiOeat 


255 

Exhibit  No.  98C 

Novsmber  "»*),    19'^9 

Sen*^. if^r  Joecr'h  H.    "oCnrthy 
Senaie  Offioe  BollUng 
•  nE.hlnr'ton  ?^,    ^.   C. 

Dear  Joe: 

v»lll   you  kindly   ri»f»r  tn   our  l^ltT     f    "•r"  •nh<-r   ^Oth 
In  vhlch  vm   8tite<l   th.nt  we   hi\<i   Just   be^n  ^xni^ln^d  hv   the   Teilenl 
Deposit   Ineurtnoe    "brporatlon  ind    fiBt  your  lo-n"   *'«re   «**"r<'ly 
orltioleed  at    that   tlae,    nnrt   In   thit  letter  I    pet  ur   the 
conditions  unier  vhlch   these  lonn*  w^re  t"^  be  hTiK'led. 

Over   two  months   hsve  now  reaped   since   the  vrlting  of 
thst  letter  and    the   Oireotors   h<»ve  now  given  me   in  outrlcht   or >r 
to   the   effect   that  unl»ee  your  lo-«ne   ire  r'-'^ld    \n  t'Ml   on  o» 
before  '"-ecember  1,    I'^Uo,    I  nan   to   lirmediiteiv   contAot  "    ;ne   Hunr  r 
4   Cb.    -^nd   plf*©*  an  orde-    with  then   to  c^ii   out  your  c-^ll    ter-'l. 
If   the  proceeds  of   this   sale  nr«  not   S'lfflotent   to  pny   t'le    ^o-'ns, 
then  I  air.  to   Imiredlitely  use   such  portion  of  ^ny   "lerims*   coll    ter-'l 
ns   Is  neo^ssnry   to  pay  your  lonns   In  their   entirety.   '^hTefore, 
will  you  get   In  touch  with  Hny   ,tt   once  '\nd  AdTlf>e   hlni  '<'   to   the 
contents  of   this  letter  eo  he  will   know  definitely   tvit  •  e  will 
be   selllnp  his  coll^ternl. 

At   today's   lorirket    It   nopeare    that  your  coll.itenil   wuld 
V-.rlng  »'*6,?75.06  against   Indebtedness   of   $5^, 908. 00  'ir   lti»wtf.ed 
below,    leaving  a  deficiency  of  ^1?, 632.9'*»    which  we  vlll   hTve   to 
realize  fma  Kay'e  collateral, 

I  na   sorry   that   this   has  coae  nbout,    but   It   Is   now 
aeflnltely   out  of  my  hands  and  I   have  no  alte^n.-^tlve  but   to  do     a 
I   nt.  dlre<rt«4.    I  eight   add   that  no  telephone  call?,    telegrana  or 
letters  will  bring  about  any  axtcnslon  of  these  loans. 


With  Kind   regards,    I  as 


Mot*  5', 9^3.96 

iBt"  eat  to  I2/IA9  nW.^?^ 

Mota  5,»*60.6jP 

Interest  .to  12/1/49  n3?*5t 


Xours  very  truly 
Prealdaot 


256 
Exhibit  No.  98D 


■%'i 


J'»>nuary  y\   i950 


Son-  M  k>i-ric«  BuUiflag 


I  nnkt*«4  by  tii<»  IT- rX^X  y(««»t#r»:iiy  th/it.   tiio   ~---'>*rariS 
AlrllM  «ftook  hlflh  v!i»  (»?-.l/«.   1  «ill<i4  Bill  Uvlor  -nJ  *ikt<ll 
h&a  «rt.y  th»  ateok  vAsn't  ••H  tiw!  h««  t«il,<*  f*«  %h"t  h»  h:  «  nn 
or«»r  not  t«  evil  thi»  ?€»«b^r*  »tc«ek  onttl  i^ft-r  th*  :.-im  f^rr. 

ttv^X  Mr  MUMMT  4  «Mk  »#« '«t«  '9tlHMt»M   »n<*   thi»  bntikknc 
rijnitWBt  im'mmm-%»  W^<l'(  wJl  «f  t>^t«  ^tsev  T-.r/  h'*!* 
fu»]r*«  •'<HM|Mi  iMJi^iiiil  •»  •Mm  uf  th«  <i«nclMHgr.  I  tf^k* 

!•  JL^**  ^■^fflaWH*"*  •*••«•  t«*»  9Tnt^  xh^n  f-iiir-  t^-- 

^■ami*  fM  fMi^llpl 'fMI  UttiHf  th»  ren  of  th-  lo^a  -It, 
Z  «UW  •#.«»fM-iM|-49l.  «»''t  1^»  •nUt  tHlnr  for  n*  t« 
««  If  WjMimi  t».«W^  •»i  •t  %»»•  e»XlT--r^l  »ut  -tr" 


Xour*  v#  •}•  truly 


257 

Exhibit  No.  98E 


t  y 


•  .  J  II     n      •»  3 

r.t'li'l       t* 
.,  "ir  Ir-n   •.•.h»'.l    th        v  'O'l  '      Voo!;     \r     Ih       r   *.r»-l 

■-^r.-:   to  "  y  >•  -t  la  ng    '>':     in     t"  1-    t  nl  v.t*" 
-JO      tVir.    •  '^..i--    clO"(lA  rt   27'    •  ::"    ir    t    1-     -VonJc 

ooMl     ••   -ftl''     r   ?7^  jfv-     •cml''   -voll-r     ':',?50.00   •     '    \f 
th*     '♦n**-0    »r  r   \r>   r.too^.    Ml'     'lo-    "•  1' rt  m1   •  t 

't    :..  1^   '-   "ol'      t  t  "t     rlo*»  yo'«    'r.■^\^  r-nll-t 

■'?.■'- />»'*0.    ''""ilx    •->   ft    -"I    "-'It*    t**.!*";h  vVl.  *      .•  h/<v»  on 
"■"-Qj'   fr;:-    '.h-    '»,->l.     of.^'o   r"  rf   B   01        •'en'   utoo";  oT     '1?.^1 

■■•-vil''     -i"**    ;'A'i    r    tot"!    of       jO.'^ir.'n..     Vpr    t.>»0       OtPf    Of 

I'.    1      o»«r   lnt#i#tlon   to   nl   o"   'n  oj    ^t    t«   "'11    r->»  "• 
"toe":'      *   r*'nn  '■'   f^f   '     ''o-r^    i  "no     «   r7",   or  '«"'t»r.   i.", 

r^'t    •    ly    :     non . /o"   '^o   not,    f>   -r    to   Vi   v>»    t'  "ir    flt^p^f     r'ol(?, 
f  •-■-   o*      "^    -f^.  1   »    'ntr  will  h  vn   ti   '"*  '"'•    *   to  o^ntt-.ua   to 
c   iry   t  .•  lo  in.    If   t^   "*   xtooKi"   r^  rcb  t*\i*  ->rloe»    -.rnf.on#« 
oboT       n'  'o  not    -    -r     ron  yo<i   "-Ithln  tn-    n«:-t  t   r- e    '»/«, 

•r     r       11      TOOfft^    Id    O'lt^ln    ^    "liOV-, 

I    -Wn't   ■-•nt   to  c-11  yoi  ^^      "ion-    ^   It   Ir      r'tty 
■  r-"    f^   T-»    'ii  /oil,   •^.ut   If   iVA  want   f-   "'t.   In    tnu^h  with  at 
/oil  on  C"ll  »•,  It   1-1     A«l>  r   for  yow   to  ri-.oh  ■..•  by       «n-, 


Vti  Mp'    t 


r«"B.    I 


^ 


Xo'irr    T*ry   Va^ily 
rrral'Mt 


258 

Exhibit  No.  99 


8«pt.  Ik,  1951 


Sanwtor  Jot.  B.  No  C*rthy 
senate  Orfle*  Building 
Washington,    D.   0. 


Dear  Jo«t 


W«  hav*  tod*/  rto«lT«d  the  oheev.   fron  V«-  n«  Hugaer  & 
Cft,    for  160,577.16  being   'n  paynent   for   the  proceeds  of  sale 
of  the  1000  ehnrea  of  Seaboard  Air  Line  Railroad   Ptock.  « 

•  X 

W#  hare  paid  your  note  for  4M»f 0*^.00   torefcher  with 
tZlk.ko  Intnreat,   have  remitted  a  ohec'-   to  Mr.   >\   J.    Senaen- 

brenner  for  tl'*,0l6.63  and  are  herewith  enclosing  our  Drovere  I 

Amft   for  '5l,3'*€.13  payable  to  your  order  >)elnr-  the  halanoe  , 

due.  : 

We  a  «  hereMth  enoloelng  your  note  etanped  i^ald  to -ether  ' 

with  the  InToloee  of  wayne  Hunaier  A  Oo.   for  the  varloua  aalea.  ^ 


Youra  yr:'  truly. 


ARat.  Caehler  A  Trust  Officer 


Cneloaure 
AlP  MATL 
Ifailei 


:  :^r^.^' 


r^-;w^.iib  ■     -.■rK.i-  ^   i     ■   x^.-^Jjyi^ 


259 


8 


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260 
Exhibit  No.  101 


261 


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Nmmt  of  CudMtU.  IVnon.;  Cutipiiin  or  PlrtyCommHto..  or  Oobj  J!(U     t^TMUMM-^JL^     ^-   £j^.rt<^" 

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m*tf*  purvu&Dt  to  Srctjon  lt.U9  of  the  WLaronain  Suta(4a. 


ntOM  WHOM  Rcceivco 


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TO  WHOM   PUD 


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PRKD  R  ZIMUERlfJlN 



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Aug. 

14 

Cunao  Praaa 
STATE  OF  WSCONSM  3 

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1766 

12 

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STATl  or  WUOONSIN 


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■argarat  f.    Bae«aa  >w..  .1.1.  wmn.  m  «m>.  — «  t>«i V  n  / i9>^ff}f9  \ 

to,  ■>.  (  ~9«9i».\  <>'      Viii^^  etatta  Sanator       „      J9««ph  R.  itoCartbj 
„  ,fc,  lUpubllcaA  tlQkili-.iiiiM.M  k.  .«>«•>  Mth.  1 2JS2iM^"  ^  *«^«*'^      ^ 

ter  •'  Au£Uat  A.  D    IM     ^.  tad   Vtmt  Ifta  f   ii»ili«  h  •  uvi  aM   :i«|Hli   ftaaadal  aturaaaal 

•  -   -  McCartt^ 

M  ,^,7  J  SSniiSS^SC  }    w  TbM  Ca^altLaa    to  Jlaat  Joaepb  R.    i»  ^iuxm  i ■»! i i i    tv 

\  aMI^llaa   UMwra*  J 

Ik.  r.rtod  ..d...  Milk.       15  *v  -        AM«uat  .  1^ 


>-nk>4  .Id  (wva  t. 


Wfora  B.  UK  / 


266 

Exhibit  No.  102 

FUNDS  DEPOSITED  W.   RIGGS  NATIONAL  BANK 
'^HINGTON,  D.C. 


i^To  November  12,  1952. 
^To  November  18,  1952. 


I 


JOSEPH  R.  McCarthy 

CIEGXP'G  ACCOUNTS 

PJ.Y  KEiiajlS 
CiECKING  ACCOUNT 

Total                Regular 

Special 

19U7 

Opened  December  l6. 

1913 

V  23,710.05    C  23,710.05 

i;i2,6i2.03 

19U9 

31,260.06        31,260.06 

li,l5U.70 

1950 

U9,599.3U        3U,171.32 

s;l5,U28.52 

26,526.90 

1951 

37,W8.85        3U,897.10 

2,591.75 

27,587.63 

1952 

30,56l.38V     27,851.68 

2,712.70 

i?,ooo.ooi/ 

Cl72,623.l8     0151,890.21 

^20,732.97 

^6,921.26 

267 

Exhibit  No.  103 

SUMMARY 

RAY  KIEKJUS 
Rlggs  National  Bank  Checking  Account 


Rlggs  National 
Checking  Account 


Identified 
Deposlta 


Unidentified  Depoeita 

HiSBi 


Checka 


Cash 


Deposit 


1 


Slips 


(To 
11/18/52)   1952 


19l;8 

$  12,612.03 

19h9 

ll,19li.70 

1950 

26,526.90 

1951 

27,587.63 

1952 

19,000.00 

I    2,602.28  I  5,133.75  I  li,2l6.00        $  360.00 

5,110.70  6,08^.00 

11,257.32  6,6lli.58      8,655.00 

20,802.19  l,598.Ui      U,970.00            217.00 

12,2140.31  l,li51i.66      5,305.00 


I  96,921.26 


I  52,012.83     I  I5,101.1i3  $29,230.00         $  577.00 


268 


EXHIKT  N<x  UH 


te«* 


Sit  QarBBS 

^P 


S«r  SJSraaa 


.-^^  15,  1.**? 


6.20.73 

5CC,C0 
30C,X 


1.000,00 


2,000.00 

5C.0C 
2SC,00 
222  ^«? 


»    3>:,x 

0.70.*: 

IX.  X 


TTtiOS 


ZZSOB 

150-00 


I      13,-^'./^ 


E.  &Car':;7  Krd  Ea?-  liarsas  ^Ittzk 


'2{\\) 


i':\iiiiiii  \,i    lo; 


QIC«««I«6  ^Ul«.  ,l>mnmU 


Al-rU   15,    1U7 


Itr.   M.  A.   Schuh,   Pr««l<l»»^, 
A['pl«ton  StaU   ftuik, 
Aitl«U>n,   VlBconalD 

Drkr  Matt  I 

I    liav*   alfnad   and   aa   ratur'ilng    to   yuu   hamttii 
th«    two   not**. 

Inat«ad   uf    havlni   Hay    (Iva   yuu   a    chack    for    th* 
Intaraat  on   thaaa   tuo  notaa.    Matt,    I    wundar    If  you  miuld 
ap)  ly   It  on   tha   principal    Inataad   In   ttiat   I   aould   Ilka   to 
■alt  until   naar   tha   and  of   tlia  yaar   tu  daclda  vhathar   tha 
Intarait  ahould   b«   paid   tl.la   yaar   or  naxt   yaar   for    Inooaa 
tax  purpoaaa. 

I    not*   that   I   aa  short   il.OOO.OO   In  colXataral. 
I  will  (at  thla  to  you  within  a  faw  daya. 

Truatlng  thla  la  •■tlafactorjr,   and  a«alj>  th-^ikliic 

you  for  your  courtaay   In  thla  aattar,    I   as 


Slncaraly  yjura. 


ufjt  McCi 


rjfc  M«;C*KTMT 


McCinh 


270 

Exhibit  No.  106 


Q-Tntleb  ^(ai«s  ^cnaU 


July  12,  19U7 


I 


Kr.   lUtt  Sctauh,  ; 

Pr«ild«nt, 

A;^pl«ton  StAt«  B^nk,  1 

lppl»ton,  Wlaconslii  > 

DMT  Matt) 

I  har*  Juat  racaired  your  notation  to  th«  affact  that  | 

mj  two  notaa  ara  dua*     I  «ond«r  If  70U  would  arka  out  r*-  f 

ntval  notaa  Tor  aa  to  alpi,   aa  w«ll  aa  notaa  for  tha  Intaraat 
I  would  Tary  «uch  pref  ar  paying  the  Interaat  bjr  nota  If  thla 
len't  too  objectlonabla  to  you.     I  haTa  two  raaaona  for 


f 

wanting  to  pay  by  nota  lj\ataad  of  caah  —  ona  of  which  la  t 

that  I  don't  want  to  uae  thia  intaraat  aa  an  ine.'Ba  tax  ' 

i 

I  wondar  If  you  Bight  hara  any  Idaa  a«  to  wbat  tha  | 

aacond  and  aT«n  aora  Important  raason  la.  i 


ly  yours. 


daductlon  thla  yaap,  and  If  I  pay  by  caah  I  can't  hold  It 
ovar  until  next  yaar  aa  a  daductlon. 


McCiBh 

P.  3.     Today'a  tip  on  tt>*  aarkat  truy. 

J.Mc. 


271 
Exhibit  No.  107 


.'-^ 


•«l>tMb«r  2,   I9'»7 


Sanator  Joa.  H.  MoCariAj 

haaiiingtoa,    U.    C. 


\T    JO»t 


'ip  to  thla  tlaa  w«  iMvan't  r«o«lTa4  your  oh«ok 
for  ^1^77. 00  beloe  Int^raat  Au*  on  7our  aotaa.   If  70a  hnvvo't 
•Iresd/  sant   tnla  onaoli,    wa  would  appreolata  yoar  •lolatt   ao 
at  onoa,    as  ve  Mould   like   to  get  /our  notaa  la  or4«r,    aa 
tna/  are  alread/  ov4r  60  da/a  paat  due. 

With  klm'   regarda,    I  ■■ 

Youra   rery  truly 

yraal'^ant 

MAS:U 


272 

Exhibit  No.  108 


w 


1^, 


TttftUtb  ,^iaUm  .j^«nal« 


ScpUidMr  9,  1947 


Mr.  M.  A.  Sefauh 

Pratldtnt 

Appltton  St«t«  Bank 
Applston,  Wisconsin 

Dmt  Itetti 

In  conplUnca  with- our  t«l*phonlo  ooBT«raatlon  of  thla 
Boraing,  I  an  ancloalnc  tha  Sanator'a  chaok  of  $900.00  to  ap|>l7 
to  tha  principal. 

I  axpaet  to  ■••  jrou  tha  first  part  of  naxt  waak. 

Vlth  kiadast  parsonal  rafardj 


c\ 


Uivap 
tee.  (cbaok) 


^i- 


I 


273 

Exhibit  No.  109 


OctnLcr  It,    l<il*7 


S.inalor  Joseph  B.    KoCarthjr 
Sf(,«tti  orfloe     viliaiog 
V  aaldiigt' n,    i^.    C. 


Dear  Jo«i 

At   requerted   In  your  letter  of   tho  13th  wa  arc 

tii0l06lnj<  hertln  t^.o  r«ii«val  notce.  Xou  vlll  ncl-  '.:.■•.  •, 
h*i»e  r«do'5M(i  x...f  rtjiin  nole  rroii,  '.kJ,fjZ''.(.l  to  f^y.OfC.lS 
ftiiJ    nave   nddert   to   tr;<;    In'.'.-'- est   .r.l«  dirr'-r- i.op  •>f 

iU64.'»2.    So   you   vl.l   klnjl:    tlj^i.   Inf    idclc-rcrt   nc'.i^E  /.r 
return  thea.  to  ue  vlth  your  chiLn  for   ZW'.h^^, 

with  kin-*,  pi* I  son   1    rrg.  rde,    I  "ir 

)fo  irs  vt  ry   trily 

President 
lUSiH 


274 
Exhibit  No.  109A 


April  5,  19W 


Senator  Jo«eph  K.  MoCarthj 
S*nat«  Offloa  Bulldlae 
Wathlogton,  0.  C. 


^•ar  Jo* I 


In  reply  to  your  letter  of  April  ItX.   Before  going 
Into  detail  on  your  stock,  you  i«lll  probably  recall  tr.at  we 
haven't  returned  the  notes  of  t5,M3.77  and  f^/.O^O.ig  which 
itera  due  January  l^th,  for  the  reason  that  when  ve  cent  you 
the  Do'^ee  to  sign,  you  signed  the  one  note  for  tU7,060.19 
and  the  other  note  on  which  the  Interest  had  been  Adi^ed  and 
did  not  send  us  a  check  for  the  Intereet,  In  other  worde, 
«•  would  have  been  Increaelng  your  lonn  by  |U63>?6  and  on 
this  1  had  specific  Instruotlona  froB  both  the  H^xamlnere  and 
the  Directors  not  to  Increase  the  loan  by  failure  of  payaent 
'of  Interest.  We  ars  returning  herein  the  two  notes  which  you 
ssnt  us  on  January  l^th  marked  *oanoelled',  for  the  reason 
stated  above.  This  has  left  your  notes  past  f^ue  slnoa  January 
13th.  If  we  run  theie  notes  another  90  days  from  January  l^^th, 
they  will  nature  on  April  l4tb,  making  a  total  of  (926.^ 
Interest  due  at  that  time.  I  don't  think  the  directors  would 
object  seriously  If  we  took  the  amount  of  Int  rest  due  on 
April  li+th  from  the  check  of  $2,U(X3.00  vhlch  you  are  to 
received  as  a  ('Ivldend  on  the  St.  Paul  stock. 

The  two  notes  which  are  secured  by  oollaternl  amount 
to  $5^, 9'^*  *nd  your  collateral  as  of  today's  prices,  Including 
Ray  Klarmas'  collateral,  less  the  $10,000.  savings  account, 
makes  a  total  of  $63*035.,  or  a  margin  of  approxlmstely  ?0%. 
It   there  la  any  disturbance  In  the  market  you  can  see  that 
this  margin  would  drop  materially. 

Af  to  the  note  which  ve  are  carrying  for  !;?0,000.00 
endorsed  by  Ruseell  K.  Arundel,  the  directors  haven't  looked 
too  favorably  on  this  note  for  the  reason  that  Mr.  Arundel 
hasn't  any  liquid  aspets  shown  on  his  statement,  as  his 
statement  shows  mostly  some  local  companies  which  he  controls 
and  real  estate  which  is  encumbered.  Therefore,  I  think  you 
should  advise  Mr.  Arundel  to  be  prepared  to  pay  thle  note 
when  It  Is  due  on  June  8,    ISkS, 


it 


275 


llprli  5.   1-9W 

McCarthy 

A«   far  as  I   am  ooneerned  personAlly.    If  1°^^ 

account  after  the   Arnunrtel   note   i»   P*^*^'    J.^^ii^tngi 
director,   for  their  -on-ent   to   relea..^y   'ohrol  fSr  th. 
"cc^unt.    Ae    eoon  as  we   receive   tne    *-^,'*w.    uuo 
St!   ^aui  dlTldend  we  wUl   mU   you   the   «^°  "'^  "^^^^J^of 
elgn  80  we  won't   be   Increasing  your  loan  by   the  amount  or 
accamul.iied   InlTest. 

Ihe  note  at   tne  Bank  of   Black  8V'*''/"*'?r!tT*tSlt 
H.    PoUsxy  S:.  been  flue   .Ino.  >^roh  8th.    ^^J'-^-^J^:^' 
a   nev  note  va.   eent   to  you  to  ^ J^8"«^;,J^Ja     in  the   .TWt 
time  we  baYen't  had   It   « yarned   to  ua.lgned.    xn^  e„oio.lag 
you   have  al.placed   th.   note  ^^J;/^,^*   ""J  ^l""'    .nd   return 
herein  another  note  which  you  ^^ii/i^J^^j,?;^2ok  Cra.k 
to  us  «6    eoon  ae  poeelbl*   ao  %<•  can  K*t  wxa  tuao* 
mailer  ndjueted, 

Dewey  at'hla    epe'Ch   that  nlghX. 

With  klna  personal  r»g»rds,    I  a« 

Xoura   Tery   truly 

Prealdant 
MA3:H 


276 

EiXHiBiT  No.  109B 


l^' 


AprU  I(,  19M 


•«a*tor  Je««pli  M.  MoOartby 
••omu  orrio*  >uUdiag 
Vaablflgtoa,  0.  0. 


Dear  Jo«i 


«•  AM  »«tar  la  rMtipt  9t  •  •h«Mi  «f  t?,^00.00 
b«in«  4inA«i«  M  tlM  St.  ^Ml  pr«ftrr«t  ato^  ike  tte 
iBttrvit  will  t9  «at  for  tix  aMtba  «•  ye«r  !!•%••  Ml  *»rU  17th, 
••eu*W»l9Sb.91,  «•  will  Uk*  this  amenukX  trm  tte  «ivi4««| 
ohMk.  Xa  ord«r  that  yeur  sotot  won't  b«  past  te»  wur  loagor* 
«•  ar*  •Boloalac  tMr«la  two  ••«••,  ob«  fMr  M,ilO.?f,  iMvIag 
•ddoA  tb*  lat«r««t  %o  th*  act*  of  (SM)*!?  •aA'M  •««  •!••• 
•neloslat  boroU  ao«o  for  »l^l3?»6r  b>nat  JHfaitt  H* 
l926>$liat*r«st  froa  ta«  aoto  af  ^J.Oteuifv  fv  «tU 
kXaAlj  alcB  tiM  aooloooa  am%—  aad  roWcni  tBM  ta  ••  v«  will 
■aU  7o«  tho  aoto*  Aatod  Oatobar  17,  19«7,  MrkaA  *paU*» 

Z  hop*  jrou  4o«*t  c«t  lata  tao  aasar  lMat*«  diaaaatioaa 
«ltb  Taft  baoausa  it  aifbt  U  poacibla  ttaat  ha  viU  ba  mr 

aaxt  praaidaat. 

Vith  kiad  paraoaal  ratarAa.  t  •■ 

S^ur*  var7  tmli 
rra«l«wt 


277 

Exhibit  No.  110 


ll«r«h  5,  1951 


2^  b«wiU  orfloe  Bl4c« 


Ih.  M-U>rtiit  «.«-»"  «■•-«•  1"  J™  »*"" 

„.  and  th*t  U^«  tnt«^  ^^'^^-^^^Ln^oT^a.  b^««l  ^pon  our  coocl»»loo 
Z^^   du."  in  1966  ««J  19^7.  our  dl^l«^c.-a^'>^^^  po^^  ^  ^^^^  ^^ 

.^  our  oo„=lu.io«.  ^-  »i*^^.r^SLIJ^  r-ull«<l  In  th,  «.b 

l^ynont  of  ^^^'^^^.^.^'t^JSrt  tTth;  yUr  19U9.    Thl.  rc'tion  — 

«pl.in«l  to  /ou  by  r;^»;;f,^^.^"^,TrT^U5«  U>  U>1.  -tt»   1.  ^r>or^ 
Mtt«r  ■*•   rtFYl»»»d.      ^  "•  .  . K     <,<»«^t.  in  au»«t\or  »•  li«»   ".;  *>••«»  f^" 

Uy  tt.   r.ct  th.t  ^f^^^J^^^rlS^o     iS^oiJ^  rtcoount  ^^  on  it.  coT- 


278 


—abiRg%<M\,  U»  C*  Haroh  5,  1951 


la  lliM  viUi  ow  ibora  af  txl  poaltloa  ••  aual    >lso  cU:  r»»  ultb 
yuur  at«ta*«it  Ui«t  o«r  ■r«o«ot  bolJlng  1«,  of  ooar««,  «•  Cv-ajrlot*  r*- 
v«rMj  of  Uw  Ui«trviatioQB  «nioh  /our  u«p«rta«nt  g«««  ■•  In  ISiib.'     ■• 
tMT*  not  rvrcrswl  omt  pea^loo  on  Um  <{UMtioa  of  lOma  IntvMt  paid  ia 
dvduotlbl*  tgr  •  Uacp^fmr  r«pgrtlag  on  Um  each  i«sl«. 

II  aould  «;^<p««r  tlMit  Um  opinion  glvsa  l^  /our  t«x  iMyar*  t-o  Um 
•ffact  tu«t  "Um  ptMitton  of  Um  t«x  d»pftrt.i9«ni  la  *tMolut«ljr  co:ilr«r/ 
to  th«  luW  and  Utat  Um  propoMd  MlJu»tJMnt«  ura  "Oeflriltely  lllugal", 
la  «7out>i*d  on  «  ftlsconoaptton  of  th«  fMtta* 


V«ry  truly  yeuni, 

wisooww  iwAmirjff  or  taxatioji 

Aa»9»tor  of  IneoMM 


279 


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280 


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281 


Exhibit  No.  112 


^<^7td<^ 


•VV^Mfi 


•  *•• 


282 
Exhibit  No.  113 


40.00 

5  7.83 

4.70 

45.00 
8  0.00 

t  00.00 


22.50 


eo.oo 

31.57 

10.91 

4243 

l«.30 

80.00 

3  37                4  7.00 

18.04 

6.17 

34.72 

1^23.^ 

» 1  y.> 

H.Z'- 

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30.00 

8  0.00 

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25.07 

15.00 

4.30 

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1^0.00 

?4.0'" 

100.0C 

.  .^., —  .  ..^_^ 

The  R^ccs  Natiot. 

Basr  c*  Wa&hington.  O   C 


ys,.14l8 

3.4  «  927 

JL.t4W 

3.3  36.77 

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3  14.10   '■   XMe« 

35  8  6.34 

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3  8  4.00''      JJiSOH 

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283 


Exhibit  No.  114 


'f<f\  10  I  'y.j 


STVfilri 


f,  r*v  v<r  (f« 


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284 


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288 


Exhibit  No.  118 


Wllli«n  P.  HcCarthy  -  Coamodltj  Accottnt  With 
Daniel  F»  Rice  &  Company 
Chicago,   Illinois 


I 


Debit 


Credit 


9/2la/h8 

Check  Riggs  National  Bank, 

Washington,  D.  C» 

i                        1   1,223.72* 

II 

?hl^c^ 

5,000.00* 

ii 

3,776.28* 

9/28A8 

P  &  S  5  M  -  Dec.  Beans 

385.00 

10/7A8 

"    "  -  Dec.  Beans 

15.00 

10/25/18 

"   25M  -  Dec.  Corn 

175.00 

10/17/U8 

"   3OM  -  Dec.  Corn 

635.00 

■ 

"   20M  -  Beans 

1,01*0.00 

II/20A8 

"   lOM  -  May  Corn 

195.00 

■ 

"   15m  -  Dec.  Beans 

217.50 

II/23A8 

"   lOM  -  jMly  Wheat 

1,367.50 

11/29A8 

"   lOM  -  Dec.  Wheat 

1,1*76.25 

■ 

"   lOM  -  May  Wheat 

11*5.00 

12/7/1*8 

"   25M  -  May  Corn 

81.25 

2/10/1x9 

Check  -  Continental  HI. 
Funds  Wired  Apple ton 

State  Bank 

10,000.00 

12/lVl^ 

P  &  S  lOM  -  May  Com 

82.50 

V5/51 

"   300  -  May  Soy  B.  Oil 

1,11*0.00 

V6/51 

"    5  -  May  Soy  B.  Oil 

285.00 

2/1/51 

Check 

2,000.00 

3/7/51 

P  &  S  3OM  -  May  Rye 

31*2.00 

3/8/51 

■    3OM  -  May  Rye 

31*2.00 

3/9/51 

Check 

7,159.00 

Balance 


10,000.00 


12,967.50 


2,967.50 
3,050.00 


1*,  1*75.00 
6,1*75.00 

7,159.00 
-  o  - 


*      A0  of  August  26,  191*8 


289 


Exhibit  No.  Ill) 


*  Tool    ••<»*w*^':.n-PiiiY 

•  •  • 


290 


Exhibit  No.  120 


j^M*^^r*^ 


•  •    •  ^ .  —  -    -  _    — 


»  •  h  • 


:.;;=.! 


'=.---:;-»9«p»^#.5SJt^55l»S8Bf. 


! 


291 


Exhibit  No.  121 


/f-lht-ff 


/7/V;      /7}^ 


^4 


^HBHE 

Hi^Htf 

i 

1 

n^^^^^H 

^13 

^^H 

^■■B^u^Z' 

« 

f>«f;**i 


>j<f;?<M'i 


^n;»X  &— :■  ■    ^^^ 


292 
Exhibit  No.  122 


JULIA  COWIOLLY        54   \6T<i  OSll 
1930  l.OLFKAU   JT 
;:hICAGO    i3    ILLWiOl:. 


w  ACCOUNT  WITH  DANIEL  F.  RiCE  AND  Company 

CHICAOO  NIW    YOMK 


m  OOBBT 

DUPLICATE 


•OULXVAAD 


CHICAaO.    4 


■AhCl-    laTH   l! " 


APRIL '"Ah    ly$l 
APnlL 


>1 

5-21 

5-22 

5-23 
5-24 
5-26 

6-i 

6-S 

7-2 

UAACH 

0-26 

V-4 

V;-5 


OCSCRIPTION 


•ALANCI    rOKWARD 


CUrtKENCY    . 

Pti,  250LU   JLY   RYEoiscC 

Pi^i   20   JLY   RYE  i,36 

PiU,23  JLY   KVE   i.-33 

TFh  TO  NOIJ-hEG 

TKh   TO  NON-REG 

P!^   25  i-EPT   C0KNi.ig22 

PC:i    50   DEC    CQHNti632 

TfK   fRO:.'.  NOU-HEG 

Pl^  25  JLY    C0fiHi33 

PiU<  25  SEPT   ..HTt3i6 

Pu^!.\50  JfcU  coKityes 

Pti  25  J  EC   CORIli;! 

CHECK 

TFR  TO  HOti-fiEC 

Pu^  20  JEC  RYE  il49 

TFK  FHOI.:  KON-rtEG 

TFK   TO   HON-HEG 


NO  OPEN   TRADES 
Ai  OF  Urli'iZ 


3000  00 
3500  GO 
2215  00 


215  00 
12X  00 
6000  00 

5348  42 


7000  00 
1347  50 
428  00 

253  75 


3i45  00 

4764  5C 

566  2f 

347  50 

557  50 


47C  00 
845B  33 


0 
ADO 

J 


\\ybVA)   \>A« 


1 


t 


TMW  •TATIMIMT  (MOULD  U*.  CAUKTUIXY  mOUtVSO  FOM  INCOHK  TAX  miVOSia 


293 


Exhibit  No.  123 


NAME     liB.  P.  McCarthy 


1718 


T2^JT 


I^IW 


4-19-39 


1^2835 


6-2935 
7-539 


o_Ll'!lI'39 
M339 
7-2Q-3Q 


♦♦♦io.do 


♦♦  •25.00 


♦♦♦45.00 
♦♦  200.00 


♦  ♦vaucrf^-^  ♦yo.uo 

^♦35.00  !♦♦♦  129.00 
••*  109.66 


♦♦♦39JM 

♦♦  ♦79.00 
♦•  ♦39.00 


L^mOO 


♦♦♦130.00 
♦♦♦120.00 
*♦*  1^.00 

♦♦♦  230.49 
♦♦♦  269.49 

»♦♦  220.49 
♦♦♦♦20.49 
**♦  ♦60.49 


IVlBi     d^ 


1718  \    A 

1718  HA- 

1719  A    A 

iTie  AB« 

1719  A   B 


me  A  A 

1718  H    A 

171«»  AAH 
.^/;171P  AAV 

171P,A_A_ 


13 


21 


8-1439 


1011139 
il!24  39  . 

''*'•  U  Cfc,  1 


i2!l5^39 
1-840 


l-lt40 


j^4ia 


3-1940 


♦*  ♦4aoo 


ISJ9 


♦♦-^4Djr 


♦♦  ♦♦9.06 
♦i  ♦30.00 


♦♦♦  ^^.49 
♦♦♦♦2l49 
♦♦♦  ♦??.45^ 


♦♦  ♦6L50  1^*  122.99 

•?_*4a00h^^  188.13 
♦♦  ♦49.00  >♦♦  233.13 


1718  HA- 

1718  H  A 
1718  H  A 
A 


♦♦  ♦20.00 


♦  ♦  ♦29.00 


itiIm 

1718  H 
171P  , 


*♦.♦  253d3. 

■>♦.♦  ?38JJll    -  17J^_^ 


^     I       Zi^.0% 


FIRST   WISCONSIN    NATIONAL   BANK 
OF  MILWAUKEE 


B 
A 

A 

A 
A 


294 


NAME        Wm.  P.  McCarthy 
ADDRrts  931   ■  H»   Tuuth  St. 


1718 


Ol-O  NO  - 


WITHOKAWAL 


^08 
***  364.08 

**3Pd.Q8 

*'**_5?^S8 


ACCOUNT  NO    SYMBOL 


5-3H0 


E«t4nce  horn«ijid 


*** 


6-2M0 

.7-1140 


7-2740 


♦♦  ♦20.00 


♦♦125.00 
♦  *  •cO.OO 
•♦  160.00 


toLtel<c.lS4ft 


XVh 


L2-19411 


Jtt*!IO.QO 
♦♦  ♦gO.Qp 
♦♦gPO.OO 

♦*  ♦gQ.OO 


|*#3^9632 
♦0446J2 


K*  10a00i*OtQ4^i 


1718  H    A 

171?  H  n 

171?  ji    Q 

1718  A  A 

An' 

[f_AA« 


••2,946Jfl^^^ie_4Ai 
m8  M  A_ 


lat.toJMtiftM 


»«f.  toMcVip 


?-:?4i 


l-i&42 


♦•?  1^.00 
*2f734.12 


C-f 


-_a,074,12 

<.?>734:L2 

»»*  ♦♦0.00 


FIRST  WISCONSIN  NATIONAL  BANK 
OF  MILWAUKEE 


295 

ExHlDiT  No.  124 


^ME    We.    P.   I'cCnrthy     r  Julie:   lid 


ADDRESS    nriii_JIaui# 


wamm 


VITNDRAWAL 


irjTnirr?:z^ 


2       IM.t«J«R«U 


r^toW.iAi 


Wn 


^IH, 


_Z_^       _  .  __  _t 

8 


■'Zyit 


hit.to  Jun*  \Hi 


zEJZ 


•ALANCf        _  I     *CCO0»fT 


NO.  tYMKM. 


S 


/32k\  v/TT^v 


l£K>^7J^. 


J^ 


^^^A/i  />^. 


.^.Jffl.2^ 


i< 


JUI124-48 


17 


bit*. 


WTT^^^^ 


^ 


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«24.7g 


^^^g 


^ 


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Q_3LI^-JL2 


yc  J  /2.i^_uA 


A***OiB  i_lH 


ftUl 


^ 


^'-'/V  ?  4 


^^ 


i5^ 


24 

«0I 


FIRST  WISCONSIN   NATIONAL  BANK 
OF  MILWAUKEE 


296 

Exhibit  No.  125 


r 


297 


KxMUtiT  Nt).  120 


A    Ct,»>J*iT       /V» ,    Il9'*l3'\ 


ft* 


(9 


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W<fV<.««Mil^ 


F- 


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298 


F I  m  }  r     /s^  i  T  )  *  A/ -->  u       B  f\j  K.        c  v  '  .^    ^  C  .      Ti.i. 


ACC^'^T     f^e.    Ilj-yiy-f 


299 


P  i    t.  }  f  V.»Ti»*^/»l.  fll/w  K  i.  l->  tf.A    (  ^  t   A.  , 


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B    5  O     I-    2  u.< 

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1. 
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301 


302 


mnif  A  with  SMartky  If 4f  tM  M««n  (witetM  tat  %•  ^  wnmmX 


■MfB*«««  wdTarMfty  tatlli^  PnA 
St.  m»f*» 

•t.    MKttlMW 

8t.  Fmvia 

AMrlMS  M«ll«f  f«r  r»lMi 

!!•«  Onaa 

SalTatlaa  Angr 

itarak  af  Otaaa  "^ 

s.c.  Saalaty,  Ortlfla  OhilAraa 

saart  Aaaaalatlaa 

■Ika  arlyyla  faad 

altr  OlMat 
viiaoaalB  Oaaaoll  far  Bliat 
D.C.  Ta^araalaaia  aaaa. 
Vlaaaaala  T.B.  aaaa. 
Marleai  Ladaa  rahaMlltatlaa  fMi 
3t.  Th«r«aa*a  Saalaaiy 
St.  Patrick* a 


•.00 

ae.oo 

STB.Oe 

•.00 
0.00 

10.00 
5.00 
1.00 
••00 

10.00 

s.oo 

1.00 
1.00 
1.00 
1.00 
980.00 
•00.00 


|1|.2U.90^ 


0-^    ^ 


303 


R.  MC  OASXA 


USXBXr  A^B 


oooofiffzoi  07  audztzoiax.  aoiou.  ivooi  tax  ajd  numsBs* 

RITXWDIBR  Wmn>  SORTAZ 


1*47  19M 

0«rr««t«t  TunM*  Xmmi«  •It.BtS.  -T«t74 

(UklMt  0} 
laeoa*  vrvrlMsly  Ux«4 

Aital  tu(*la   tMM*     -B  »013     -T.MS 

0*rra«t««  Mnal  iM«M 

tax 
Laaai  ycMMMl  MOVta    «»__«___«___ 
0«rr«etM  mA  Mrml  IM.  t«i 
ABt  yrrr  aaMis«4 

AAtal  «t  ••raal  Ibomm  tax 

lataraat 

nnaytax  a«  lata wat        

at  taaahara*  ratira- 

/txiwi  aurtax 

imX  pxftTaljr  aaaaaaa4 

'"^  ^akra  rtat  aartax 
•araft 

ratat  aurtax  At' 


1949 

B.SBl.ei 


s.sai.ei 


Ud  aurtax 

TSRJU 


Aital  90%  aartax 

lataraat  . 

as<  aurtax  k  tat 


fatal  aital  taxaa 
Tatal  tataraat 

TatU  a«tBl  taxaa  4  tat 


B4.M 


aa  anti7 


ma  aka«  MhaAaJa  af  aMltlaaaX  taxaa  la  aaaUaftra  af  tatav 
aat  «htali  la  ta  %a  «af«ta<  tteraaa  aad  aitat  tkarata  as  arar-aaaaaa- 
■aata  aa«  ««  ar-aaaaaavata  aa  »ran«a4  i»  aaatlaa  Tl.Of  (•)  a  a»«  « 
af  tha  atatataa.    Aa  Vlaaaaata  OapartMat  af  Taxattaa  tea  aa  MaaraV 
taa  la  tha  aattar  af  aMlag  tataraat. 


304 


wrmX  ^M 
VHmutux 

■       TOttl 


'  Beta.-'-:--''':"'- ■:■ -^;;' 

V.-;9».X«  ',;  •.vy;;.*. 

10. w 
-134*2*  4. 


305 


XMlTtAMl  AMlt  lo«rt 


joaui  X.  ao  ouumr 

t54  S«Mt«  Offl««  \1§M 

ooBwxffxoi  or  ooMmam  tajubm  im 


tax  MtarM 


"THT ^^{|g^^*"iiu     ■ 


-i.soa.at 


•tS.OO         «S48.»4 


8«]|««  S 

SohaA  « 
Sokad  4 


1.  MTt««a««  r«««lT*« 

41s9««ltl«a  •r  ■■••ta 

a.  Staa««r«  OM-ll*«trl« 

C».  prmt   stack  SohaA  i   .4.7111  am 

%aB«s  A  aaoBrltiaa  Soba<  a  a»»  i 

••  Ukll  '*»"••  '*     •' 

•^■*"'*  Soha*  9  -8.950.83     -?, 528.0 

f  raf  ataak  8«Jia«  S  2Sa  1 

oa.   aaMoa  ataok  solia*  « 

..  Daaa  Ca.   oaaaaa  ataak         Sokad  4 

S.  Zataraat  »al« 

a.  Vtatar  MoCarvtok 
*.  Stayhaa  MaCartkjr 

a.  Ayylatan  stata  baak  -l.AOS  i«    bk^i  - 

d.  Oanaral  Uatara  Aooa»t.  -1.803.18    1831.7 

aaaa  Car*. 

4.  Stata  laeaM  ta.  ,.u     Comant  2  -\g.877.a8     .aj  o. 

Ineoaa  bafara  daduetlaa 
far  fadaral  laoaaa  tax 
aad  aantrttattaaa  > 

8.  Vadaral  tnaaaa  tax  da- 

duotlMa  C, 

InooM  %afara  daduoUaa 
far  aaatrtbuttaaa 

8,  Caatrt¥utlaaa  daduetltola     Ca—aat  4 

Oavraatad  taxaMa  inoaaa     Ta  Xxhlk  i-B  "     --;--*. 

•18,521.92     -7,274.45 


238.10 


•1.803.18         1831.72 


-150.00  ^ 
^  -32.25  y 
8,810.28 V 


8,888.51 


8.488.45 


306 


COMP'JDJ  01 


Ooit  of  1211,000  parjmlu*  of  Central  of 
aeorgla  Ry.    Co.    5%  bonds  4u«  1«  195t 
7- 1*48     Leii  cash  rtord   »»-r^yTTggT'»«f*tTB 
Caah  rocTd  In  roorganlaatlon 


3oo«rltlao  of  cent  of  Oa  Ry  Gi 


1.     jiirat  Mortgago  bonda  -  1% 
SfTimu  *B"  Boada 
Serioa  *A*  ofd  atook 
ConnAon  atocK 


*       Net  loaa  1948 
ATa.    coat  oan  stock       por  aharo 

V%  sharea  sold  1703.89 

3«lling  prloo 

Loss 


Remaining  oost 

No  of  shares        700 
Cost  • 

Total  Coat 

id   Cost  of  Cent  of  Ga  5%  'band!  due  *59 


42,f60. 


18,000 
6,000; 
9,000' 

30,000! 

40,000 
5, COO 
4,O0C 
2,000 
100,000 
2.00C 


211,000 


aCiiLOIL    2 


J03BPH  A.   MC  CARTHT 


U  Oy  L0d3  TRQM  SALS  0?  SECUHITISS  Oif  Ci^NTRAL  Oy 
SKORQIA  RAILRCUIO  CO.    H  1948 


Valat 


Par  C«nt  Co«t 

of  Cost   of  Now     3«I  ling 

•f  Baoh   Soourltios  rrioo 


1. 198.57 


45.148.24 


633.00     453.00  1»49633^     675.57     416.24   .259.33 
1.055.00     828.00  2, 73502<   1,234.81     518.83   -715.98 

12  66     454.00  1,49964%     677.06     360.15   -316.91/: 
2,403129   28,539.00  94,26901%  42*850-88^  12, 365. 14-17, 779. 09» 
S0.874.0U  i¥}.% 45.148.24 


633.00 

1,055.00 
12.66 


30,164.23 
12.365.14 


1.7,799.09 


Loot  olalBOd  on  rotura 
A4JuitBont  to  Sx.  C  1948 


-19,091.31 

-18,625.33 

-465.98 


Oest 

4,455.00 

1,212.50 

1,062.50 

6,403.53 

8,966.89 

1,096.04 

875.62 

432.99 

21,406.25 

46,346.81 


307 


joara  I.  MO  OABisr 


aasMWiM  13 


2«3SIS  Ain>  QAIW  nou  UJM  Of  {aUOAOD,  XUVAOCU 
*  ST.  ri0X.  B.A.   CO.   OOXMOI  AMD  m  8T0<K 


IJ-  -U    BMCkt  5^"  14f!lT«.0«     7ll5S.«l  *•*•  "*'  "*• 


MU  

Bal«a««  B»000 

BaIum  »0 

•••4«4t    Bmtfit  I  ••00 

Balaaa*  1 

u-i-4t   MU  -a,ooe 


S7.ro«.u 


'^•1S.«48.U 


•"■la    a:3«:fl  "■""• 


.20.»»7.ai 


11,0S1.6B 


M.OBO.OO     l»,t07.ai 


X««M«  •l«t»«4  (la  nturma 
MJ««t««  la  fravlraa  M41t 

!•■■  aat  olftia««  aa  ratan  • 
•4Jaata«at  to  XidlUlt  0 


•  -14.788.19 


-16,848.54  -tO,»97.«3  -14,788.15 
-8,080.91  -18,0»a.4O     -7^288.14 

-7,884.45 

-8,980.85     -7,888.01 


PflBflRUD  81DCK 

iSrS:!!  "•  ».»7«.78       S.4a4*.M 

1I.BV.4T  g^  18,t4T.10     17,X57.1« 

•*•*•.••*.  »«»«»*a«  aa  ratara  - 


308 


joa»  K.  no  OABTir 


MMISB    4 


Mas  warn  iaui  9  fr******  axmllm  ■•>•  oo.  mMK 


•r  mU  "    "  "                   " 

10.>*'-4«  1.8«0  92»U4.W 

S.S.4f  '  -.-          - 

BaiMM  i.Tio  4a.ao«.*t 


••lltaf  fvlM 


•••tr.n          .i,Mt.u 


LOU  RDM  UU  OF  BOA  080.  ilOOl 

o.'>^.40         too      u.tii.at 

It-     -4f 

]i«i««M         »M.M    o,ioa.w 

Aijvttatat  t«  B]MUt  0 


••wo.as 


309 


^-  .  V-^  .    JOSEPH  ».  MC  CARTHY 
•2^'tetS  '   XUXliHSST  PAID 


3«tB  dull    S 


(           1041-49  Cliack  #21                           187.60 
12-30.49  Cte«k  

Aao-iat  olala««  oa  rctura  97.80 

Adjuttaant  t«  sxhtblt  C  -ISO. 

1)   Iat«r«st  yald  t«  Hr.   3t*ph«a  MoSarthy 

Aaouat  olalaad  oa  tax  ratura  71.75 

AMMuat  paid  104.00 

Adjuataant  ta  XxhUlt  C  •32.29 

0)  Xataraat 

Taar  paid  1946    1947    1948  . 

Xat.   ta 

1.28.48  iU2.tS 

B-11-48  914.59 

2-25-48  1.18 

6-25-48  485.92 

e-27.48  8,324.55 

11-19.48  418.40 

1^31-48  856.34 

3-15-47  -^^  ti  ^-    858.74 

9-11-47  .  .  800.00 

U-20.47  484.48 

4-82-48  ,         926.51 

7-8-48  '^  408.40 

7-16.48  602.99 

11-13-48  4 

1-V49  i 

8-80-49  4 

9-80-49  /  i 

18-20-49  /  f 


858.74 

600.00 
484.48 


926.51 

408.40 
802.99 


463.26 
271.71 
463.26 
630.04 
811.67 


Xataraat  daduotlbla  1.803. )«  8137.90  2339.94' 

A»aaat  dadaetad  aa  ratura    0  8869.88 9180.22  ' 

Adjuataant  ta  XidilMt  0  <-1803.18     561.72        ff 

Adjuataaai  far  jaar  als  ad  ta  aadlt 

-4880.81 

latai  Tha  abaa  aabaduk    aat   aaly  adjuata  tha  daduetlaa  far 
iataraat  m18  ta  tha  A»ylataa  Stak  a  baidt  aa  ba%  aaa  laara,  bat 
alaa  aarraota  tha  acfracata  aaauat  alaiaad  aa  daduottaaa  bar 
•lt478.88. 

B)  Xataraat  paid  ta 

Oaaaral  Matara  Aeoaytaa«a  Oary.  -88.00 

Aaoaat  alaiaad  aa  ratara  0 

Adjaataant  U  liditblt  0  -88.00 


310 


MeCartlir's  1949  r«f(ura,  ••  orlgiaally  filed.  Apparmtly  »•■  first 
■««•  out  to  show  a  tax  obllRatioa  of  •13.2$-     ^«  «itrlaa  nipportlns 
that  obligation  do  not  appaar  to  ba  In  '•oCarthy'a  handwriting.     Hia 
writing  appaara  to  ba  uaad,   bowavar.   In  antriaa  abowlng  dlvldanda  ra- 
oalvad  and^loaaaa  on  atook  aalaa,  with  tha  lattar  pro«uelng  a  tax  leaa 
that  allBinatad  tax  liability,  aeoordiag  to  tha  retun.     Hanea  all 


When  it  waa  raoalTed  io  tha  ^^pplaton  aaaaasor'a  offioa,  tha 
notation  "Saa  attaehad"  appaarad  on  Sebadula  B,  Daduotlona  for  Intar- 
eat  Paid.     There  waa  no  attaehad  paper;  nc^arthj  aant  It  a  few  daya 

later,   aaylng  tha  tax  department  auat  haTa  lost  It,   but  that  ha  waa 
forwarding  o  copy  «ift<ir  baiag  told  by  raportara  that  It  waa  ■iealB«. 
Thlo  eehadule  of  interest  paid  in  1949  follows: 


Victor  "oCormick,  Ore«i  Bey,  Wis. 

Howard  «e»'arthy.  Appleton,  Wla. 

Steve  t^ccarthy,  Appleton,  w^a. 

WllllftB  Mooarthy,  Chicago 

nelen  "offmen,  Appleton,  Wla. 

Olive  nomely 

«ra.  Elmer  ^oon,  Appleton 

Peoplef  Loen  and  'Inanoa  Co.,  Appleton 

Thorp  'Inence  ^'O. ,  Thorp,  "la. 

OutHganle  ^ounty  bank,  Appleton 

Appleton  '^ate  bank,  Appleton,  rls. 

fflfffs  NRtlonal  bank,  Waahlnpton,   D.   C. 

Cltlrena  State  bank,  Shawano,  Via.  , 


97.50 
2857.70 
71.75 
2258. 
74. 
75. 
18. 
269.92 
247.^- 


311 

Exhibit  No.  12S 


Y 


^-f 


Toll  Galls  M*d»' 60  Wisconsin  7-f?477,   *  •>,•  York  Gity 
;;iL?cr- 'ri«r  -    •.l<*r«d 'Kohlh«r:^,    Alfr«.i    r.ohlV.sr^,    Ir.r , 
1    Jrst  37th  Street,   '.'ew  York  Clt/ 


roll  Calls  .'..sJ«  to  Bronxvii?,«  2-336i.,  ?ro':xvi: 
Subscrlbsr  -  Alfr«d  .Ncinlbsr^^,  -/f  ^•llwocd  Ho&o 
3rorxvilI<.   ^^sw  Yfrk. 

?':£*  Nsr;«   ani/or  'Van'hsr  of  2 

r-rscn  Gilltj 


yii.^  -   3'  bscrlbtr  - 
F.   rerr,    3032   2cr,h 


'v'C  -^ 


1.7/52 


ci.ll  of  u/\6/5: 


/,"  -s.  3]2a, 

ixt.    16<»1,    -vashir^- 
tor,    :>.   C.      Sijrjscri- 
^»r  -  V.   S.   C<ritol- 
t.xt.   I6.'i.l   -  Str.at:^r 
•  'e3«;rh  X.   "cCarthy. 

iiixe   re.Tiarks  as  op 
nr&csiin'  call  cC 
^/l!-/52. 

.Sign's  rf.iimrks  is  or 
call   of  4/16/^2, 
"xc^ft   call  ms'is   fron 
i-.xt.   ^02   tt  *'s.    3.120- 


7/30/32 


:.9."«    CS'tS 

111,  I VI, 


^9ii.  rra.ia    t>v   "K«rr 
-t   ra.    3120^    r^xt. 

V.    G,      c>;ibscrM)er  - 
';.    :.:.    Cst^itcl    -     ••:- . 
•37  -  :>*.^«.tor 

C-tjI    r« .-.'.«  by 
"■'cCarthv,''  y^  .    312, 
-.xr..    ?37".      S«T«  suj)- 


■CT-'  *:»r 


^r»r«ii 


^^V52 


312 


)/>/^. 


:  nnJ/cr  ''urHer  of 
:-80n    ?«Tl»j 

sa-*    -lira    -«<   r-n    call    of 


;{«m*rk8 


r.hy,"  Ka.    U-     . 
lCt»l.      Subrjc:- 

':.    S.    J«ri*,-l    -    -.^;.»;,. 
slon    l!'':»l   -   Junctor 

Call  "a  •!•  ■'■•,' 

'•*.    3120,     .^'  .    .  ■■,1. 

T^c^Jlr  '  rail. 


313 

Exhibit  No.  129 

WISCONSIN  STATUTES 
1939 


229.21  Limit  of  Loans,   (l)  The  total  liabilities  of  any 
person,  copartnership  or  corporation,  other  than  a  municipal  corpora- 
tion, to  any  bank,  for  money  borrowed,  including  liabilities  of  the 
copartnership,  the  liabilities  of  the  several  members  thereof,  except 
special  partners,  shall  at  no  time  exceed  twenty  per  cent  of  the  amount 
of  capital  stock  and  surplus  of  such  bank,  or  fifteen  per  cent  of  the 
amoxuit  of  capital  and  surplus  of  such  bank,  and  in  the  case  of  a 
municipal  corporation  twenty-five  per  cent  of  the  amount  of  capital 
and  sxirplus  of  such  bank,  but  obligations  of  any  person,  copartnership, 
association  or  corporation  secured  by  the  warehouse  receipts  issued  ^^^ 

by  WEirehousemen  licensed  and  bonded  in  the  state  of  Wisconsin  purau-  ,'   ^^^ 

ant  to  the  provisions  of  section  100.13  or  to  the  United  States  depart- 
ment of  agriculture  pursuant  to  the  provisions  of  the  federal  bonded 
warehouse  act,  covering  readily  marketable  nonperishable  staples,  when 
such  property  is  fully  covered  by  insurance,  if  it  is  customary  to  insure 
such  staples,  when  the  market  value  of  such  staples  securing  such  obli- 
gation is  not  at  any  time  less  than  one  hundred  forty  per  cent  of  the 
face  amount  of  such  obligation,  and  in  the  form  of  notes  seciired  by 
not  less  than  a  like  amount  of  bonds  or  notes  of  the  United  States 
Issued  since  April  2^,  1917,  or  certificates  of  indebtedness  of  the 
United  States,  shall  be  subject  to  a  limitation  of  thirty  per  cent  in 
addition  to  the  limitation  hereinbefore  stated,  and  the  discounting 
of  bills  of  exchange  drawn  in  good  faith  against  actually  existing 
values,  and  the  discounting  of  commercial  or  business  paper  actually 
owned  by  the  person  negotiating  the  same,  shall  not  be  considered  as 
money  borrowed  within  the  meaning  of  this  subsection.  The  li.mi  tg.tion 
herein  provided  shall  apply  only  to  new  loans  made  after  the  effective 
date  of  this  subsection.  The  renewal  of  an  existing  loan  without  increas- 
ing the  amount  thereof  shall  not  be  considered  a  new  loan  and  a  renewal 
with  an  increase  shall  be  considered  a  new  loan  to  the  extent  of  the 
Increase. 


orm 


tlieo 
state 


by  DC 
siici 
this 


(2)  No  bank  having  a  combined  capital  and  surplus  of  more 
than  twenty-five  thousand  dollars  shall  make  or  renew  any  loan  of  five 
h\indred  dollars  or^  more  without  securing  a  sworn  financial  statement 
unless  the  loan  is  secured  by  collateral  having  a  value  in  excess  of 
the  amount  of  the  loan.  No  bank  having  a  combined  capital  and  surplus 
of  twenty-five  thousand  dollars  or  less  shall  make  or  renew  any  loan 
of  more  than  two  per  cent  of  its  combined  capital  and  surplus  without 
securing  a  sworn  financial  statement  unless  such  loan  is  secured  by 
collateral  having  a  value  in  excess  of  the  amount  of  the  loan.   (Spl.  S. 
1931  c.  10  s.  13;  1935  c  2^5;  A3. 08  (2)) 


fon 


314 

Exhibit  No.  130 
WISCONSIN  STATUTES 

1949 

221.29  Limit  of  Loans  and  Investments.   (1)  (a)  The  total  lia- 
bilities of  any  person  or  partnership,  including  the  liabilities  of  the 
several  partners  except  special  partners,  computed  individually  as  to  each 
partner  on  the  basis  of  his  direct  liability,  or  corporation,  other  than  a 
municipal  corporation,  to  any  bank  for  money  borrowed  shall  at  no  time  exceed 
20  per  cent  of  the  capital  stock  and  surplus  of  15  per  cent  of  the  capital  and 
surplus  of  such  bank  with  the  exceptions  stated  in  this  subsection. 

(b)  Providing  such  liabilities  are  secured  by  warehouse  receipts 
Issued  by  warehousemen  licensed  and  bonded  in  this  state  under  section  100.13 
or  under  the  federal  bonded  warehouse  act,  and  providing  such  receipts  cover 
readily  marketable  nonperishable  staples  which  are  fully  covered  by  insurance 
if  it  is  customary  to  insure  such  staples,  and  providing  the  market  value  of 
such  staples  is  not  at  any  time  less  than  HD  per  cent  of  the  face  amount  of 
the  obligation,  this  limitation  shall  be  30  per  cent  in  addition  to  that 
stated  in  paragraph  (a)  hereof. 

(c)  Providing  such  liabilities  are  in  the  form  of  notes  and  secured 
by  not  less  than  a  like  amount  of  bonds  or  notes  of  the  United  States  issued 
since  April  2l,t   1917  or  certificates  of  indebtedness  of  the  United  States, 
this  limitation  shall  be  30  per  cent  in  addition  to  that  stated  in  paragraph 
(a)  hereof. 

(d)  Such  liabilities  as  are  created  before  April  1,  1953  in  the 
form  of  notes  may  exceed  the  limitation  stated  in  paragraph  (a) ,  provided 
that  the  excess  shall  not  exceed  30  per  cent  in  addition  to  that  stated  in 
paragraph  (a) ,  and  provided  such  excess  is  secured  or  covered  by  guarantees 
or  by  commitments  or  agreements  to  take  over,  or  to  purchase  the  same  made 
by  any  federal  reserve  bank,  or  by  the  Reconstruction  Finance  Corporation, 
or  by  the  war^  department,  the  navy  department  or  the  maritime  comirdssion  of 
the  United  States. 

(e)  Such  liabilities  as  are  created  before  April  1,  1949,  in  the 
form  of  notes  or  bonds  secured  by  mortgage  or  trust  deeds  insured  by  the 
federal  housing  administrator,  may  exceed  the  limitation  stated  in  paragraph 
(a) ,  provided  that  the  excess  shall  not  exceed  20  per  cent  in  addition  to  that 
stated  in  paragraph  (a) . 

(f)  Such  liabilities  as  are  in  the  form  of  bonds  issued  by  the 
federal  land  banks  in  accordance  with  the  provisions  of  section  21  of  the 
federal  farm  loan  act  and  amendments  thereto  may  exceed  the  limitation  stated 
in  paragraph  (a),  provided  that  the  excess  shall  not  xceed  30  per  cent  in 
addition  to  that  stated  in  paragraph  (a) . 

(g)  Where  a  portion  of  such  liabilities  is  guaranteed  under  the 
provisions  of  the  servicemen's  readjustment  act  of  1944  (38  U.S.  Code  693; 

58  Stat.  284)  and  amendments  and  regulations  pertaining  thereto  the  limitation 
stattd  in  paragraph  (a)  hereof  shall  apply  only  to  that  portion  of  such  lia- 
bilities which  is  not  gviaranteed  by  the  administrator  of  veterans'  affairs. 


315 


-  2  - 


(h)  Such  liabilities  as  are  in  the  form  of  notes  or  bonds  secured 
by  mortgage  or  trust  deeds,  insured  by  the  secretary  of  agriculture  through 
the  Farmers  Home  Administration,  \iader  the  provisions  of  Title  I  of  the 
Bankhead-Jones  Farm  Tenant  Act,  and  amendments  thereto  may  exceed  the  limita- 
tion stated  in  paragraph  (a) ,  provided  that  the  excess  shall  not  exceed  20 
per  cent  in  addition  to  that  stated  in  paragraph'  (a) . 

(2)  (a)  Except  as  otherwise  provided  in  this  subsection,  the  total 
liabilities  of  any  municipal  corporation  to  any  bank  for  money  borrowed  shall 
at  no  time  exceed  25  per  cent  of  the  capital  and  surplus  of  such  bank. 

(b)  Where  such  liabilities  are  in  the  form  of  bonds,  n-jtes  or  other 
evidences  of  indebtedness  which  are  a  general  obligation  of  any  city,  town, 
village,  county,  or  school  district  in  this  ste.te  the  total  liability  of  any 
such  municipality  shall  at  no  time  exceed  50  per  cent  of  the  capital  and 
surplus  of  such  bajik.  The  total  amount  of  temporary  borrowings  of  any  such 
municipality  maturing  within  one  year  from  date  of  issue  shall  not  exceed 

60  per  cent  of  the  capital  and  surplus  of  such  bank.  Temporary  borrowings 
and  longer  term  Wisconsin  general  obligation  borrowings  of  a  single  municipal 
corporation  may  be  considered  separately  in  arriving  at  the  limitations  pro- 
vided in  this  subsection. 

(c)  Liabilities  in  the  form  of  revenue  obligations  of  any  munici- 
pality of  this  state  are  subject  to  the  limitations  provided  in  subsection 

(2)  (a)  but  in  addition  thereto  any  bank  is  permitted  to  Invest  in  any  general 
obligation  of  such  municipality  an  amount  which  will  bring  the  combined  total 
of  such  general  obligations  and  such  revenue  obligations  of  a  single  munici- 
pality to  a  sum  not  in  excess  of  50  per  cent  of  the  capital  and  surplus  of 
such  bank. 

(3)  The  discounting  of  bills  of  exchange  drawn  in  good  faith  against 
actually  existing  values  and  the  discounting  of  commercial  or  business  paper 
actually  owned  by  the  person  negotiating  the  same  shall  not  be  considered  as 
money  borrowed  within  the  meaning  of  subsections  (1)  and  (2)  of  this  section. 

(5)  No  bank  shall  make  or  renew  any  loan  or  loans,  the  aggregate 
total  of  which  exceeds  the  amounts  prescribed  in  this  subsection  without  being 
supported  by  a  sworn  financial  statement  unless  the  loan  is  secured  by  collateral 
having  a  value  in  excess  of  the  amount  of  the  loan,  but  no  sworn  financial  state- 
ment is  rec^uired  if  the  loan  is  not  in  excess  of: 

(a)  Two  per  cent  of  the  combined  capital  and  surplus  if  such  bank 
has  a  capital  and  svirplus  of  less  than  *25,000; 

(b)  $500  if  such  bank  has  a  capltaO.  and  surplus  of  $25,000  and 
less  than  $100,000;  or 

(c)  $1,000  if  such  bank  has  a  capital  and  surplus  of  $100,000 
or^  more. 

(6)  A  sworn  financial  stt.tement  furnished  by  the  borrower  to  a  bank 
in  compliance  with  subsection  (5)  must  be  renewed  annually  as  long  as  the  loan 
or  any  renewal  thereof  remains  unpaid  and  is  subject  to  the  provisions  of  sub- 
section (5) . 


4 


i 


316 

-  3 


(7)  A  loan  or  a  renewal  of  a  loan  made  by  any  bank  in  compliance 
with  subsection  (5)>  without  sworn  financial  statement,  may  be  treated  by 
such  bcjik  as  entirely  independent  of  t-ny  secured  loan  made  by  the  sune  bor- 
rower providing  such  loan  does  not  exceed  the  loan  limitations  provided  in 
this  section. 


317 

Exhibit  No.  131 


318 


Exhibit  No.  132 


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319 


Exhibit  No.  133 


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320 


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322 


Exhibit  No.  134 


,o^ 


rJ    ,      Stnat*  Offlot   Bull<Jl«« 


i^rll  22,   19^7 


^.:^ 


telov  M  art  glTln«  you  Xh»  ""^t-t^o^V**?/"^., 


15.000.  Cynt.  Of  Oj.  5.  of  *{^   g 


X. 

1. 


?0  til  Hcela  Mialnc 
00  th  Burrouoba 
200  tt   0.  M.  »t.  r.  *  '. 
KO  ah  a«a.  rin*a«« 
15,000.  *ortg*««     _  «_w# 

1211,000.  Cant,  of  »a'5*V  12  iL  —  IT'^ 
5oO  ah  ataa.  Oa«  *  Uaa.  >^%  pf4.  tW    '  ' 
I8S6.10  Oaaand  C.  D 


.00 
.00 
.00 
.00 


l:JS:§S 

5, 600!  60 

f,200.00 

23,210.00 

4,000.00 


Total  Loaaa 
20)(  aargia 

Talua  of  CoUataral       y^ 


Total  Talua  „,    


■ASll 


© 


323 

Exhibit  No.  135 


Moreh  Ik,   1949 


Bviiiitor  Jotapb  R.  NeOarthy 
StoAt*  orflo*   Bblldlof 


/' 


DMir  Joai 

Xour  litter  of  the  lOtb  iia<lretatd  to  L«wreno«  haa 
beaa  handed  to  ae  for  reply.  Z  wae  woztdorlai;  If  jeu  aod  Lawraaoa 
uae  the  aaae  arithoetle  In  arrlTing  at  the  paroentaga  of  aarfln 

00  your  ooXlataral,  ae  ther^£««eeaa  to  be  quite  a  dlffarano* 
betveea  the  two  figuree.  Below  we  are  setting  up  the  value  of  yo«r 
ooilnteral,  whloh  you  will  note  !•  approxlaataly  |6i,$9'(.00  aad 
the  note*  whloh  aie  held  by  the  bank  total  l$9f'^97.00.  In  figurine 
your  eeourltlea  we  harea't  taken  Into  ooaaideratlon  the  1678.29 
whloh  it  held  by  the  bank  for  the  payaaot  of  iAt«>roet.  Tou  vill 
note  that  aooordlng  to  the  figurea  we  are  eettlng  up  that  tout 
■argln  la  11^  plua.  If  you  oan  etill  figure  thia  at  ZOJt   or  OTar, 

1  wiah  you  would  give  ae  the  seoret  of  your  figuring. 


oou,^Ts^Ul. 


Kjemae 

100  ah  Seaboard 

7,000.  Cent,  of  Oa.  ^t   of  •» 

10, COO. Pent,  of  da.  Sa  of  9$ 

50  ah  Heola 

100  ah  Burrougha 

300  ah  O^rbara 

50  ah  Uen.  rinaaoa 

Mortgage 

Savinge  Aoot. 


J.  R.  KcCarthr 

1300  ah  seaboard 

Caah  froa  eale  of  ?00  ah  Seaboard 

4<j0  ih  <; ^aboard 


SOO  ah  Dana  Corp. 
700         " 


:aah 


ah  Cent,   of  da. 


I.6?%.00 

500,00 
557.50 

*,200.00  v^ 

300.00 

3,800.00 


ai, 125.00 
7. 31?.  $6 

l?,00O.0O 

2,8oo;oo 


With  kind  regarda,   Z  an 


Xoura  very  truly 


324 

Exhibit  No.  136 


c^i^M^. 


^i;  DEPAUTMEXT  OF  STAi  K 


;  tEo  all  to  l^liom  tiiMie  ^rotentt  l^tall  Comt.  Greeting*:  b; 

r  y^        I'l^ZD  :;.   r.I!.i;.'.sm-JVTT  .        ^  secretary  of  State  of  the  State  of  Wiscoruin  and  % 

?  Ken>er  of  the  Great*Seal  thereof,  do  hereby  cerHfy  that  the  annexed  copy  of  | 

:^  election   financial  statements   of  Joseph  a.   !.:cCarthy,    filed  Aucusf  | 

£  eth  and  Aucust  19th,   l%k,  i 


has  been  compared  by  me  with  tt 


orlKlnal   expense  Btateiaents,   on 


S    in  this  Department,  and  that  the  sarna  is  a  true  copy  thereof,  and  of  the  whole 
^^    4^  such  — —   -^o^.-.^^-- 


"/n  Testimony  Whereof,  I  have  here- 
unto set  my  hand  and  affixed  the 
Great  Seat  cf  the  State  at  the 
Capitot.  in  the  City  of  Hadison,  tMs 
^  -    -       .  A.  D.  1951* 


325 


/  ELECTION  FINANCIAL  STATEMENT 

Nam*  <rf  CaadMslr.  rrr»<jn«l  Ctraftign  Of  r»rt)r-Cooimitl»».  or  0»b;       .  ,;rf>rCt.ytt.-M.    ^''    ^^^♦'w^A^i-Ci- 

N»Bt  (f  fMFTUn  af  CiiKltn,  CaOLmitta*  o*  Ctab; 

STATIIMENT  of  unounu  noirvd.  duboraad.  ««c.  i>  tb*  intcnata  at     ^^K  '-f^'^-     fi   /^V  (\aJ{7  a^^ 
sAn  of ,^1.-4^--.   .«>;r^tf.A.^Jfc4  on  tha  .^Vviv^^XJ-CtA^a  ^      _     . 


rmndidala  for  •.  "    etJ<Vion     i  *'*  ^'>*  °n^ 

tkkcl  at  tlw    j  SSmU  ;    to  ht  Iwld  on  the  . — L^ 

■•4a  panaant  ti.  Sx^tmn  ILM  of  iko  Wi»rcii(in  Stantaa. 


day  of  . 


.i*V!rr5.-- S-?.. 


.  A.  0.  IN.St.. 


DATE 

nu>y  WHOM  RECEIVED 

rOB  VBAT  PVRMU 

AMOUNT 

t 

! 

; 1  ...  

i 

1 

1 

J 

1       ■                        • 

"" i 

) 

Total  iMiliad 

MTI 

TO  WHOM  PAID 

FOR  WHAT  rviu>ou 

AMOUITT 

..43^ 

..?..**A1. 

FTS. 

V.Jf.s:... 

.  ..l>-!VI>:*V<3fc«<_/(#f:«!  *t***^ 

....^.a.A. 

-ii. 

V • -•- 

* 

— 

\ 

1MI«»CkiHa<»W<a««) 

\JJ.H..i. 

a> 

326 


7T 


!    i  i 

Hi 


i 


e     I 

M 


^ 


I: 

4i  ' 


^ 

^ 


OATS 

TO  WBOJI  rklD  |C»«I'4) 

FOK  WHAT  rvmrotM 

AMOUNT 

■*•• *"* 

"* 

. 

~ 

Tlfcl  «ll  1      1 



fOR  WHAT  Pl'lirQU                            KUOXn  T 

DATE 

1. 

i 

! 







-* 

1 
1.... 

i-   • 

1   ... 

1 

rrAT«  or  WISCONSIN        > 


.  M  oMk  MV*  >kM  W  li 


""•'*•  r4«^ !  *"^ "" "" 


r*r  pallbiml  »ofi 


te,  rf       ,^s6i<V^.rV:<?^     ^,»4(y.Wi^t(»r-iU.>-««.<.'."nr  I-' 


I  »MI«mtt—    «■    i»r«fT«J  '  . 


♦  TW  •*rr.«»rT  it  •  imtm^ti  c 


_„.   ISM  H>  (•)•  .,    .    . 


327 


~7- 


^ 


BLECTIOI  niANCIAL  STATSiaiT 

XaM  of  eandldat*  reporting:       JOSEPH  R.  McCATHY 
3TATO!ENT  of  uiounta  rec«lT«<],   disbursed,   «te..    In  the 
interests  of  Joseph  R.  MeCarthy,   osndldaCe  for  ncaiin- 
stlon  to  the  office  of  United  SUtes  Senator  on  -he 
Republican  ticket  at  the  prl-narjr  eledtlon  held  on  t  he 
fifteenth  day  of  Au^st,  A.D.  1944,  aade  pursuant  to 
Section  12.09  of  the  Wisconsin  Statutuoa* 


I 


Receipts  since  last  atetement  filed  by  the 
aforesaid  candidate  preceding  said  primary: 

Disbursements   since  last   statement   filed  by  the 
aforesaid  candidate  preceding  said  prlsiary: 

MORE. 


S5^ 


'^sssw* 


V 


328 


trATt  or  ffiacoatii  ) 

OutacMl*  Count/     ) 


)••. 


Joseph  R.   McCarthy ,    b«l.ng  duly   ••orn  on  o.th,    •*/•   that 
b«  •«■  A  o*adld»t«  for  th«  ■o.lBatlon  of  hl.««ir  for  th.  Onlt.4 
•tat««  8«ii*t.,   Tottd  for  mt  tho  priory  hold  on  th.  ISth  (l*y  of 
Aufutt,   194»,  *ad  th«t  tho  foregola*  !•  a  tnw  and  ooapl.t*  flnaa- 
OUI   itatt-Mt   of  .T.ry   (r«celpt/di.bviri.«nt/obllgatlon)   by  hV« 
for  political  purpo.cf  for  tb.  ptrlod  ondln*  on  th.  12th  day  of 
Aufu.t,   1»4«,   tog.th.r  nth  th*  na.«  of  .Ttry  p.rMn  to  or  fro- 
itioa  tuoh   (aK>uiit  «as  r«o«lT«d/dl.bur.«.«nt  »••  •adc/obUgatlon 
•a.  incurred),   th.  .p.olflo  purpoM  for  -hlch  and  th.  dat.  on  rtlch 
•aob  -a.  -ada  or  r.o.lTad,    tog.th.r  with  th.  total  aaount  of   .-oh 
(r.o.lpti/dl.bur.».nt^obll«.tlon.)   la  any  «ount  or  .ann.r  *»at- 


thl 


ibaorlbad  and  .worn  to  b.f^»  ■• 
It/fP'  day  of  Augw.t,    1946 


329 


a'BCIAL  COMMITTEE  TO  INVESTIGATE  SENATORIAL  CAMPAIGN 
EXPENDITURES.  1M4 

la  eooDcctiMi  witk  noodaatinc 
PRIMARY  BLSCnONS.  CAUCUSES,  OR  CCWVBNTIONS 

QwstloMMirt 

Th«  foOowiof  questions  are  to  be  answered  by  every  candktate  for  the  offlce  of  Senator  of  the  United 
Sutea  at  any  Primary  Election  or  at  any  Nominating  Caucus  or  NooiinaUng  Convention  in  every  State  of 
the  United  States  daring  the  year  1944. 

The  requested  information  is  required  in  connection  with  Senate  Resolution  263.  78th  Con^reaa.  2d 
Seaaioo.  March  8,  1944. 


1.  Name  of  State  in  which  you  arfe  a  candidate  . 


?t< 


Coafarflmtloas 

^  Hava  you  received  from  any  aouree  any  contribution,  gift,  service,  or  anything  else  of  vahie  to 
^  yow  candidacy  for  nomination  as  a  candidate  for  election  to  the  Senate  of  the  United  States  from 


th«  State  of  _/f /^r'?:r^^^rf-Sr-«s« in  the  Primary  E)ecti<m,  Caucus,  or  ConvenUon  during  the 

ymr  I944T  . 

Yes _   No.*'^     . 

If  yow  answer  U  •TTes,"  please  specify  in  detail  below : 


Total.- 


330 


S.  Hm  any  peraon,  with  your  knowledge  or  consent,  received  «ny  contribution,  gift,  i«rvic«,  or  any- 
thins  elae  of  value,  in  behalf  of  your  candidacy  for  nomination  for  election  to  the  Senat«  of  the  United 

States  from  the  State  of in  the  Primary,  Caucua,  or  Convention  of  1M4T 

-wr-^- HtS'^!^ 

If  your  anawer  ia  "Yea"  pleaae  specify  in  detail  below : 


B^  wkvm  r*cmv9d  ami  addrttt 


TOTAL 


Frowi  whom  rffMii-fd  and  addrtt* 


Total 

4.  Haa  any  individual,  group  of  individuals,  partnership,  association,  or  corporation,  with  your  knowl- 
edge or  consent,  rendered  any  services  or  made  any  facilities  available  (including  personal  services,  and 
the  use  of  billboards  and  other  advertising  space,  radio  time,  office  space,  moving-picture  films,  and  auto- 
mobiles and  other  transportation  facilities)  in  behalf  of  your  candidacy  for  nomination  for  election  to  the 
Senate  of  the  United  StaUs  from  the  SUte  of  in  the  Primary.  Caucus,  or  Con- 

vention of  1944.  without  receiving  in  pa.\-ment  or  compensation  for  such  services  or  facilities  the  fair  aqtf 
reasonable  value  thereof  T  —  - 

Yes  No 

If  your  answer  is  "Yes."  please  fully  describe  the  services  rendered  and  the  facililios  made  available, 
set  forth  the  payment  or  compensation  actually  made  therefor,  state  the  fair  and  reasonable  value  thereof, 
and  explain  Uie  baais  upon  which  such  fair  and  reasonable  value  waa  computed. 


^  <^ 


/^  kK^-vV'       ^    y  C-c^ 


331 


Expenditures 

5.  What  expenditures  or  diabursemerits  have  you  made  in  behalf  of  your  candidacy  for  nomination 
for  election  to  the  United  States  Senate? 


-if 


Tb  whom  paid,  addrttt.  and  purpott 


Total 


fXIjuI^. 


8.  Have  you  made  any  promise  or  pledge  relative  to  the  appointment  or  recommendation  for  appoint- 
ment ol  any  person  to  any  public  or  private  position  or  employment  for  the  purpoae  of  procuring  support 
in  your  candidacy  tot  nomination  fbr  election  to  the  United  SUtw  Senatet  , 

Yes No.-r: _ 

If  your  answer  is  "Yes," please  specify  below: 

Name  of  person  to  whom  promise  was  given  .  - __ ™ 

Address  of  person  to  whom  promise  was  given  

Description  of  position  or  employment  promised 

(//  ixUilHmai  rpae*  u  nnd*i,  turrpUnunt  cm  an  Mtra  «*«««  of  pap»T  and  attack) 

7  Has  any  person,  with  your  knowledge  or  consent,  made  any  promise  or  pledge  relative  to  the 
appointment  or  recommendation  for  appointment  of  any  person  to  any  public  or  private  position  or 
employment  for  the  purpose  of  procuring  support  in  your  candidacy  for  nomination  for  election  to  the 
United  SUtes  Senate? 

Yes  No    *^. 


332 


If  your  answer  ia  "Ye*."  pleaae  »p«ify  below : 
Name  of  penon  mftking  promiae.  and  addreaa 


Descriplion  of  position  or  employment  promiaed 


8.  Have  you  uaed  any  public  fund*  or  political  patronage  in  behalf  of  your  candidacy  for  nomination 
flection  to  the  United  SUtea  Senate? 

Y.-«  No       ^ 

If  your  answer  ia  "Yes,"  pleaae  specify  amount  and  source  of  funds  and  nature  of  patrunaye 


9.  Have  any  public  funds  or  political  patronage,  with  your  knowledge  or  eonaent,  been  uaed  by  othen 
I  behalf  of  your  candidacy  for  nomination  for  election  to  the  United  Statee  Senate? 

Yee No t.. 

If  your  answer  is  "Yes. "  please  specify  amount  and  source  of  funds  and  nature  of  patronage 


10.  Have  any  funds  appropriated  by  Congress  been  spent,  with  your  knowledge  or  consent,  in  your 
behalf  as  a  candidate  for  nomination  for  election  to  the  United  SUtea  Senate? 

Yes  No     *rr:. 

If  your  answer  is  "Ye*,"  please  specify  m  deUil  below  : 


It.  Do  you  know  of  any  specific  instance  in  which  any  person  receiving  compensation  from  the  Fed- 
eral Government  has  Ix-on  intimidate<l  or  coerced,  or  in  which  any  attempt  has  bwn  made  to  intimidate 
or  coerce  such  person  in  any  manner  designed  to  affect  the  result  of  any  Pnmary.  Caucus,  or  Convention. 
Inbehalf  of  your  candidacy  for  nomination  for  election  to  the  United  Slates  Senate' 


Yea 


333 


W  r«ir  MTwer  la  "Y**,"  pl«u«  tpecify  in  detail  btlow : 


St*ti  of 

Comnjbr  ._ 


IP 


th^.ho  /„<^-         ^'    --^  ^~  W^fe^^:^ . ...  Miic  duty  iworn.  dtpoMi  (•Omia)  wd  un 
ihy  the  fofcgwng  aiuwcn  to  queatioiu  hmvin  conUhM  an  tra*  and  MrrMt 

Sub«n4bed  and •wora  to  (•fflrmed)  before  me^ls  JL  d  .day»f  ./^9!j^rT^  .  »...  .A.D.1M4. 


[SKAL] 


In  order  that  it  may  obey  the  mandate  flven  to  it  by  the  SenaU,  thl»  Committee  wiH  receive  and  con- 
•ider  any  thargethat  may  be  filed  with  it.  under  oath,  to  the  effect  that  the  funds  appropriate!  by  the 
l-ootTWi  have  been  or  are  being  uied  to  intimidate  or  coerce  any  votes  eaat  nr  to  be  caat  in  the  lenatoHa] 
'^^^^  1944.  or  any  charge  coming  within  the  scope  of  thU  Committee's  jurisdiction  and  authority 
as  nxed  by  S«ute  Re«>lution  26$.  Seventy-eighth  Congreaa.  copy  of  which  accompaatet  this  qoestionnAira. 


334 


Exhibit  No.  138 


^m^^^^^S^^^^"       l^^^^^^I^^^^     'iB^^Z^^^^^I^^J 


^m^^.. 


^T|ii^;;i;;jj;;;;;;j|j»g^^2£^!sZcii 


^  DEPAUTMEyX  OF  STATK 


I  «o  all  to  »tjom  tlj«e  ^rrtenW  mM  Comt,  «ctetinB«:  jr^^ 

^  j^       7H3D  ?..   ZI;-:.SH!-A;:  secretary  of  State  of  the  State  of  Wisconsin  and  ^> 

M  Keeper  of  the  Great  Seal  thereof,  do  hereby  certify  that  the  annexed  copy  qf  gs 

M  election  rinanclal  statement  of  the  Aprletcn  rtcCart!-.-/  Tor  "er.ator  ^ 

<^  Club,   filed,   Au.Tust  2l;th,    19.'.6,  ^  5^ 


e:f''ense   state-i*"' 


H    in  this  Department  and  that  the  same  is  a  true  copy  thereof,  and  of  the  whole   g| 


/n  r«rt»nony  Whereof,  I  have  here-  '^ 

unto  set  my  hand  and  ttffixed  the  ^^ 

Great    Seal   of   the   State   at    the  ^ 

Capitol,  in  the  City  of  Madison,  this  ^ 

-    Oetaber    .  A.  D.  I»S1*  ^ 


335 


APPLCTCN 

HcCARTHy  r€C  SENATOR 
CLUC 


Auf;tj«t  23,    1946. 


S*er»t«ry  of  St«t.n, 

?fc41son,   *l»eon«ln» 

^Ar  Slri 

Bnclo«»d  Is  ny  rin«n'!i«l  report  •«  s«er»t»ry  of  the 
^  ?»pthy  for  -^en^tor  Cl-jh,  I  an  t«rri-ly  «r>rr;/  »h«t  •:hl9 
r»port  li  l«t»,  i-nt  thn  reason  Is  thdt  the  l»«t  tr<ns«-tlon 
•>>  i<ni«  way  h«ck  In  Hirch,  «♦.  which  ti'so  Jr!3«n  7«n  ■>u»t»ni 
for-ed  a  new  A;  "nrthy  'or  *er.«tor  Clih  »n1  we  c««ssj  to 
fijnetlon. 

When    I   rerelTei  yo  ir    l»-,t«r  with    th*  fnr-ns  ar.l   Infor- 
aatlin  aho'jt  th"    report,    I  brought   all  iy  bpoV-.i  ani   Da-^«r« 
to  h;«  orrioe   »nd    Isft  thea  th«re.      I  was    ind«r  th«   i-i-re»slon 
th  t  he  woiH  take  e«r»  of   It   N,^    I   saw  hiii  wasterlay  ani  ha 
told  "w  that   since  he  had  «n  entirely  serarate  orranliatlon  he 
dirt  int    inrlHa  my  flfuros    In   his   report  <^r  do  a  thinf;  a'out 
the-^. 


T  a-,   snrn-  'or   the  dela;-    -.it    1  a.i.re  yo'i  that    It   was 
not  *y  fault   and  hop«(  that    It   has   not  caned   any  tro.:"-!?. 


*ery  tr«ily  yotrt. 


r  •«   ■■i>W».   McCflrUm   (or  SsrvMi  Ck*.  ■*>.   ■wf*>    t»««V     1«(r*tw> 


336 


ELfcCTlON  KINANCIAL  i>lAlhMtNl 


•  ol  Cii  iHilii  P 


■*   Cm^pmhb    II   i^xyi^— d»^»>  «ff  Hub; 


K»in«  of  S^rtuo  of  tmmtttmK<\ Illi  i  or  0»k; MtA^.   Ru  Ul    LAFaOQ 

STATtJtr.NT  of  anxMiiu  ranirsl.  di«bgra>d.  mi.,  ta  tk«  iKi.mta  of     )7u4^t    v  OXpn    R.     >(cC«rU]Lj 

tickft  >l  tW    j  IlBMii-j    to  b>  ImM  on  Om  ..J^Ul 4>j  of  JklgUSt  A    H    IM  & 

au4a  punuM  tu  Soctioa  ItM  of  Ik*  Wiscoii 


OATC 


noU  VHOM  RCCCIVKD 


rOB  WHAT  PVHFOaC 


AMOUNT 


1   fcmn—t  iBiimiMiji  fpom^ 

..iJ-WU.^.. ;  J9<...Y*a.SU-atten 


jrriii»*..pQrMiu««ij 

Q11.T>  (arjoAlj 

.6biaerftl.u(« 

.f9.|   50 

49.'    «in 

.Jad*  .25... 
.J-.fK.13.. 
..F.tJ5^.13.. 

.B«j..ICltr«*j 

..9^.JB^.yiin.H«(3f 

..Frtflflta  ^ffrivtr 

A,.P*.  Uftotr. 

.(jBneral.uM 

..ftjntrnL.ua* 

..9iiatr«l..ua«          

42. 

50 

00 

.00 

.00 

74 

Hw:^  1ft 

.tontrtil.uM 

5. 

..Hw:*.25... 

.lJL«..MtQftrthx 

9AMrAl    H«4 

55ft- 

' 1 

1 

■      T*ttl  nmhni 

...«55.'    74 

OATS 

TO  WHOM  PAID 

rOK  WHAT  PVRi^MC 

AMOITNT 

.JM..5O 

Prlntlnir 

.70.. 

on 

fe*..  £ 

.Bl-oWord.. Print  lug  Co^ 
.AaoAAOA-.OoaoIl  Prln.tezi 

Printing 

13^ 

10 

Jl^b.   If 

I  Hultlgraphlnc 

iS3.. 

4s 

Ttb^  13  . 

<>*Ji» 

9t«npii 

SQ^ 

00 

Itox*.  25 

Q(9r-K4rru 

AdTertlAlag.    

.  .  .feM.. 

'9 

- " — 

.."«»... 

K 

337 


f        11 


OATI 

TO  WHOM  PAID  iCoot'dl 

FOR  WHAT  PURPOU 

AMOUNT 

( 

Dfn 

TO  WHOM  OWING                  i                 FOR  WHAT  Pl'RPOSE 

AMOUNT 

TMtf  Orl^ 

t> 

_,=_ 

STATS  OP  WISCONSIN            -y 
Mr«.    Bllth    I^rtnn mmt  .   . Iwiiw  dalr  •wom.  on  Mtk  Mrs  tlut  h*  to 

TTlSSr^"'  **"  i  T— ti^i  "^  -J"dg«  iI»-IL-HcCUi:tJij.  ,  f»r0.^.5«n«tor  

«Mf.rul^    !  '!J^   I     X^docth.  ..13Lih...*.,<rf.-    .iuguat-  ._. A.  D.  IM-^,  ««l 

IkM  Ite  f<nc*iM  li  •  truf  .nd  complrU  «BUnaI  ■UUniaM  of  «rtry   [  dtibi^^Mml  [   bj    .ApplCLtOa 

Kflr.>rthy,-tar -Sgaator-Jlub _  fcr  pouuoii ,«,«,»  ^S^nod  .ndi,., ...  ih.   . 25Ui 

***  1^  --,'i" "liltJlS^    >•«- A  ««i«Ul€r  with  OltiMUM  of  rrtry  peraoo  to  or  from  whom  ««fc 

{dM.f«m^.u   m,^\ 
I  oMlcmtlM 


m^  ^  .  Ow  •pwilW  purpow  for  which  ud  tb>  doU  oo  whkh  uch  wu  mad>  or  rKviv^  to- 


I        r«c«lBtj        i 
■MkOT  w<tk  tho  IM<1  UfinuM  of  nirh      duburMmmla      u 
I     obliobo^     < 
iwa  u  hafon  bh  tlito    tJ-»Jl(  day 

/?^/^ ^.D..,U.. 


aay  Amount  or  mwuier  whateorrrr. 


ISAcmaiT  or  l-amikim*.  L^m>n««  or  uttDfT 


IM^Ii  lk«  ooM  IWrt  w»  M  rMoivu.  dtokarnxMU  or  oMi(Bliow  tkii^^f  ■kooM  bo  tUI«l  omt*  tlM  fart  o/ 
*•  bla^  Md  •fldani  iwnd  lo  IW  bmI  muwr.  ItW  (»  to). 


No«*rr   PoMtr 


nyolcii  ronailttM  i 


sM  Mt  >i«^u  oadovit  a<  bio  cmndidolf  ^  p*r*on>l  ilolMiMal. 


338 
Exhibit  No.  139 


*  A 


1 


m& 


Itil'"i    -j"   g(|pn.m,^^ 


DEPAIM  ME]^T  OF  STATE 


^  So  all  to  Whom  t^ttt  ^ttttnti  mM  Cotnr,  ^rrrtings:  j 

^  /,  ^    -Mj:.!  <!.  ^-It^v:  C'A:!        _,  Secretary  of  State  of  the  State  of  Wisconsin  and  '^. 

f^  Keeper  of  the  Great  Seal  thereof,  do  hereby  certify  that  the  annexed  copy  of  Jj^ 

Sn  sl.ctlon   'M.-nnr'inl    stntenents    of   the   V!  1  ■.vni.'.ioo    :onr,t-j    :;rCa.-U.y   for  ¥% 

•^,  rr-nnlPz-  -nvb,    riiod,    Aiirnr.l.    "^ril,    ret-tcmbor   11th,    Octob-r  I'^nh  rind  3g 

^  Novombcr  .^^j-il,    19':'),  '"'  Is 


S(i,    has  been  compared  by  me  with  the. 


rns'j    sliitc-:i-it.'. ,    ■  :i   TWm 


>;    o/  such. 


In  Testimony  Whereof.  I  have  here- 
unto set  my  hand  and  affixed  the  | 
Great    Seal    of    the    State    at    the  'j^ 
Capitol,  in  the  City  of  Madison,  this  », 

,„..    .        .      Jc:<x^-r,  A.  D.  I9$l.  ! 


339 


UIinUKBE  CPgOTT 

i^ccAHiH"^  Foa  se:.at(.^  club 


\/ 


3/l£ 


Vie 
■sfh 

3/£l 

.V'3 
.VL3 

3/23 
3/Z3 
.VC3 
I'll 

nil 

■hicl 

•Vse 

■«/C7 

3/:8 

3/'8 
?/?0 
3/30 

K<  4 
4/lf 

4/ro 

4/C3 

n  fr\r 

"'26 
3/   1 


fhLM    r.lcL  REGglVa^ 


Jotin  Lctic 


PCJR  laAI  PUBfOSS 


To  advoc 

prooott 

didacj  0 

R.  UoCa 

U.S.    Ce 
Al   dhallock 

Tisconsin  Tire  •-  Supply  Co. 
Better   '.lorn  A^^pliance  Cc. 
Dutch  ^retn 
;;icke7  Ccluman 
Chirles    Tilson 
.'essel   S.   "Jhyte 
"rani'   "•.    Test  land 
Sussel  1,    ^oueg 
J.    i.    7ilson 
Albert  J.   Tanck 
L>.    Sj.aluiiit'  Hill,   '.'..i^. 
Gilbert  S.    Lance 
'ohn  a.   l.aisar 
Raljh  Y.   Cooper 
Liave  Konlsr 
rienry  C,   Hyslop 
Ly.a  Ham.Tiatis 
Art  Coffey 
i-eo  Coffey 
jjeraia.i  Coffey 
J.   uuiaeu 
wick  Allen 
ilorris  Sctunerz 
Ray  Kertais 
^0  in  Ilonatb 
E.   B.   Thitsk* 
C.   H.   Cephart,  H.j. 
S.    S.   Ccffey 
l!ax  Littof 

Thoi, Hansen  <•  Sons  Co. 
>.    J.   T.   nolo 
UtioCo.,    Inc. 
Republican  I'arty  of   lisc. 
Republican  /arty  of   Vise. 
Hepublican  xartj  of  .iisc. 

Total  Beoeipts 


t«  and 

he  caa- 

i  •fosepb 

thy.   for 

ator 


I     50.00 


f.0.00 
49.EO 
49.FO 
lO.DO 
43.E0 
If  .00 
20.00 
10.  DO 
10.00 
26. X 
10.00 
10. M 
20.00 
10.00 
15. JO 
2f.X 
10.00 
10.00 
2S.00 
26.00 
26.00 
60.00 
60.00 
60.00 
60.00 
60.00 
26.00 
.  6,00 
60.00 
46.93 
10.00 
10.00 
60.00 
1.000.00 
1.000.00 
1.000.00 

♦3,970.43 


340 


::inA'JKBE  ccaxTT 


^AIE 

Tc  7Ho;:  /; 

LLi 

i:-u 

X  1    m 

'.A.    J  reaper 

:o 

Vrf 

•'ce   Li;,    Ific 

-    /<-r. 

i.«.    ireiij^-'ir 

>^c 

'./      1 

i.w.    G^.e.icer 

lira 

".'CC 

4  'i; 

•/7 


3/  T 


•Tee   i.lt.,    I..C. 
lele^  .iCiie  Cc. 

Tia  .ic   Ci'iti  on   T3  '" 
ierleri   -rauii 
i?e    'rjrnal    Cc. 
I: e    'onrnal    3o. 


^L'R  T!A'I    i'JRrcSE  A.".e'U:.T 

rrintir.t  $2fO.X 

.rintint"   ^-  ^uioiis  IT.f.OO 

rri..iine'  £5J.„0 

rersc;:al  expenses 
for  alLer.uance  cf 
;!-l*aJkee  Coaiity 

:.'.eelin,^s.  4rr  .X 

.ri;itiii(-    '    -iiLons  iic.^X) 

Lc'ȣ"-iii:i taiice   coll? 

to    ual.e..  4.43 

Ani.c'J.-.c  extents  S'l.OC 

:;iT.ec.ra,.  iii;^-  '    3i^r.s  53.43 

ino   crc  ucnsts  ^ZJ.OO 

nJver  lis  Lilt'  '■  Ciis  l.^C-.T 


Tr tal   ^iSLursec 


.r;.34:.33 


341 


ELECl  ION  FINANCIAL  STATEMENT 

ttuK*  at  C«ndid>U.  P»r.ir>«l  C»mp«l|Ti  or  Pnrtj-CmnmltM,  or  CJab; _ 

fjluiUAkittt  .C2a»u>trY.  ^JtCitJiTHy  68..2eW>£jC^aiA 

Nmw  of  atnury  of  C«ndid«t«,  CommittM  or  Qok; /iATlMW  ...Wi..^LL^XI<( 

BTATI-IMKS'T  a(  wnounU  nnirtd.  dutnirHd,  oU..  la  tin  inUiwU  of      ?*y>f*4       ><-     ^f  Cl^tTHl^ 

'■ad^teu  for  j  "XiSili'"  (  c  Oi.  o«M  o*  Uti.   c><X11l«t. oa  Um  .  j^&PwaU-CAjX - 

IkkH  at  Uu    I  ^rl*!??!   to  be  h«l4  OB  tka JJit. <k]F  af J^ia^xtr. A.  D.  IM^. 

ma<to  puiauaal  U>  S^lion  12.09  of  th»  Wiaraaaia  SUttitaa. 


DATB 

nou  WHoy  recuvko 

FOR  WHAT  PURPOW 

AMOONT 

f 

I^.IPRK     flTTA:^!]?. 

0. 

OATK 

TO  WHOM   PAII> 

FOR  WHAT  PURTOaX 

AMOUNT 

(. 

."if^lDER.   ATt>cHtJ> 

r i. 

... 

''■ 

TaMiarOMiMPWswO       

342 


H    '■^ 


To  WHOM  PAID  'Coal'd) 


FOR  WHAT  FURTOM 


t  pwd  (Brouctot  forvwd) . 


-ni  WIIUM  UWING 


r«»«J  itwhun**!  

fXjR  WHAT  I'l'KWSK 


j/oAf^ 


'/s/.9.^ii. 


STATK  *\V  Wl>iir»\s|.\ 


-nC^t'-'^  A.BrJv  K%  .-A      N»tfl*rt    V     "He  HCr-        l^.ni  4Mly  •writ,  on '.•th  n^  ilKt  H«  U 

'irJn!:J,.;  ,.,,1., '■;..::":■■":  .,r  JTi*fcK"K'.McC--tVv,     f„,  U.  S-  ^erw-tor-   .  . 

NU4r..r.ith.     '    '-'"'-^Jl    '       '.11...  •!.  'i         1..      f  7T->^^U»t"  <lir.lt..».l 

Ifcil   lS»  r.f»«.,..,,     .   i>  Ir...    •..(,...  |,,t.    l.',i.n.,«l  Mil.  "  (M  or  rtrr)    ■  ij,.l.jr»^n*»<       h)r         F^t  kiMi  ■   KCC 

il.ml>^r*^Ti,*M     »•■    'iiwV  Ifrf    <>|>r*   'i*   |».r|»'«e  fnr  wStrh  ami  thy  fl«lr  on  wKn-Ii  r«rll   wna  n\»A^  or  rvr*iva«l    1.. 


I  ot.ll(ati.. 


.f  ...I,    '.tl.h.. 


J^l.h,.r_,„,M.]   ...  an,    M  „  o,.„„,r  .h.-.^„  i,  Tf  A^  L*-l(*<.   ^,, 

/'  «J^         -(.'"i,     J|       J  i*^*»i»'>    -'    'li    III .'   .Ml 


/    lk«  Want  »w«  a».l«>*  -.~..I"I   ."  >l.»   »"»«l  "•al>»»' 


>«1m1«u  <  p«-r»HU'  •falr-nirnl 


343 


UIL1AUUB  COORTT 
UoCARTaT  FOR  SB2JAT0R  CLUB 


uAU 

TO  IHU;  PAIJ 

Fvh  .TJJAT  f!IR^os| 

AMOnST 

3/  E/46 

Aaount  prtvioatij  r«t»or 

tad 

$l.d40.38 

8/  3/46 

Th«  Journal  Co. 

AUvertialug 

63.00 

9/  £/46 

Uil«auk«t  Stntlocl 

Advartiaing 

E8.80 

9/  fa 

Th«    loarnal  Co. 

AUvartislof 

1E1.20 

8/  6/46 

Tht  Jouroal  Co. 

Advartiaiof 

113.40 

8/  6/46 

Uilwaukta  Santinal 

Advartlaine 

39.20 

9/  f/ie 

Tba   Journal  Co. 

Advartisin£ 

50.40 

8/  7/46 

Uil»aak««  Santinal 

Advartisin£ 

39.20 

8/  •'/46 

Jaaaa  !lllsoa 

SarvLcaa 

100.00 

8/  8/46 

Irvin  ^uallar 

Ova  of  aatomobila 

fO.OO 

8/  8/46 

Tba   Journal  Co. 

Advartiaint: 

77.96 

8/  8/4C 

Jaan  Boyd 

Addraasing  mail 

'.CO 

8/  8/46 

C.   i)tUa« 

Adaraaain^  aail 

7.60 

8/  8/46 

B.   XlUiaaa 

Adurasaiat  sail 

T.60 

8/  8/46 

lUrfarat  Tllaon 

Adt^rasainf  aail  , 

10.00 

8/  8/46 

Jtaona  Tttob 

Ad.raaaio^  sail 

U.OO 

9/  8/46 

Ollvt  Hlrat 

1 
Addraasiof  aail 

U.OO 

8/  8/4r 

Klizabath  Braao 

Addraasinf  aail 

U.OO 

8/  8/46 

:ir».  Ilarrj  Olaon 

Addraasioe  aail 

7.60 

8/  8/46 

Clara  b«M 

Addrasaing  aail 

3.76 

3/  8/46 

olunciia  3ro*o 

Addraaaioi;  aail 

7.50 

8/  8/46 

8.   Nallar 

Addraaaiog  aail 

11.25 

8/  8/46 

B.   rails 

Addraasiot;  aail 

15.00 

«/  8/46 

8.   Ktillok 

Auaraaaio^  aail 

15.00 

•/  8/46 

r.   Jaoobi 

Addraaaioy  sail 

11.26 

:M4 


Addrtttiac 

•ail 

11. 2t 

kdirtaMiof 

■sail 

•'.60 

AddraasLot; 

■all 

U.OO 

Addrasiiog 

Mil 

15.00 

Addraisiof 

■all 

11.26 

Addrasaia^- 

Bail 

It.X 

Auurassiot; 

aa.l 

7.L0 

Addraasioe; 

mail 

16.00 

Addraaaio^ 

anil 

7.60 

Addraasin^ 

fflail 

15.00 

AduraaaiQe; 

■ail 

It. 00 

Addraasin^ 

aail 

7.60 

addrossinf 

Mil 

7.ro 

Addrassiof 

mail 

".10 

Addrasain^- 

aiail 

7.60 

Aurtertisiot' 

C6.60 

Advirtialof 

^9.20 

Adverliain^ 

88.20 

A-vertlsiot: 

201.60 

Advertising 

600.00 

Advartisio^ 

100.80 

Advartiain^ 

17.64 

Adva;  lisiOf' 

24.64 

MQvar  lisin^' 

'f  .ro 

Roon    for  LlaallnfB 

11.90 

s.    Iisy  Badio 

.iaa 

133.x 

8/   8/46  ?.    GravtDoa 

3/   8/46  F.    :c»ialli 

3/    3/4C  Audrey   Kl«in 

8/  8 '46  Olt'a   .''ischar 

3'   8 '46  C.   "Taoha 

8/  3/46  A.    Poall 

3/   3/46  Jean  Crosse 

8/  8/46  -rs.   Carl  l^^aT   . 

8/  3/46  Graca   Fields 

8/  a/46  Pern  Loucaard 

8/   6/46  i^oroltiy  Ublaar 

8/   3/46  Buoica  Hbeiotiardt 

8/  3/46  Marie  Rauther 

9'  8/46  H.    Tohnaon 

9/  8/46  neorpe  niii 

9'   9/46  The    rcurnal    Co. 

3/  9/46  Uilaajkaa   3ar.t.inel 

8/  9/46  :.:ilaaukaa   Sentinel 

3/  9/46  Tde   Jour.nal   Co. 

8/10/46  'i&a    'ournal  Co. 

8/  9/46  Uileauicee   Seittinal 

3/  9/46  ailaaokae   3antinel 

3/ir/46  7x800O3in  Juiiisti 
ChroDiole 

j/l'/46  iiscoiiain  .Uat'jarsag 

9'ir/46  Priater   ■.lotel   . 


3/l''/46       Herbert  Braua  l^etaro    .'or    caab   advincad 

re   pnjaent   to    raaea  R. 
Tilson   on   July   31,    1946.    lOO.X 

8/l'/46       Praok  Cravenoa  Servloee  100.00 


345 


8/14/46  A«rlal  Iptoialtiat 

8/12/46  il  ftuAtia      ,<: 

8/l£/46  ImW  Polfkift 

8/14/46  BatWl  BrMA 

8/14/46  Mr*.  01ar»  fiSM 

8/14/46  XrvJ't^JAbtfltt 

3/14/46  a 

8/14/46  41  Bulla      . 

8/14/46  lll««akM  9^la«l 

3/14/46  Th«  Jooroal  Co. 

8/31/46  latbao  1.  R«ll«r 


••■  A4T«rti«io«  ^■^''^'" 

180.00 

Diiirilaatloa  SxptW* 

10.00 

Priaiios 

.  29.60 

t«l«er«pbB,   inoidtnUla 
•ad  also.   *x^9as9 

100.00 

AddrAatiotf  ■•11 

S.76 

AUciresaiot;  aail 

3.T£ 

Addrcatio^  ■•!! 

20.30 

Strvleat 

fO.OO 

AddiUooal  for  ad  of 
Aof .  11  to  oorrtot 
origiaal  uioiiat. 

16.80 

Cdi 

2.36 

LoD£->di»t«ao6  oalls, 

looal  taltpbona  oalli, 

■■ala,  diraotory, 

offioa  aup^llaa,  ^ttae«, 

ragistarad  aail,  oab  fara, 

aato.a)(p'3naa.  234.20 


TOTAL 


$6,020.43 


346 


ELECl  ION  FINANCIAL  STATEMENT 


Nub*  at  CwtdWisu.  [VnnnsI  Cunruiv  i 


arr  al  CindidsU.  Commllt*  or 


iNUUkiJ   


Nun*  of  S«crrUr 

STATKJIF_NT  of  wnounu  nniyi.  dilbunW.  .U..  I«  tka  inUraM  of  ^^CBafcA-cJkj    "K.  YV^    Ca  i,t(1  .. 

rai>d>.lw>  for  j  "^J^^JJJ^"  I  fc,  u^  j,<B„  ^  I  J      S      -^  £y- ■   rT^y      ^  ^  .V'  '  *^'   ''    ■  ' 

madi  pumisBt  tn'Kn-lion  12.03  of  ttw  Wucomin  SutuU*. 


^*tr 


A.  D.  IMi^. 


DATB            1            rnOM  WHOM  Hk'CKIVED 

rom  WHAT  ruRPoai 

uumn 

4-.»-4«.  .. 

.1- v-***.... 

«■« 

aa 

jora 

<ft 

*-A 

B.<J 

jC* 

M^ 

0  * 

XA...    N^rOt^AW 

>; ."? 

.fr.^-MV... 

.it  .«•.«*.  v.. 
.J...».-..-t.v... 

D^^rt;'.  a}  »ryv,,s.'jLLii.T>w... 

.9.  ft 
.ft  A. 

..V-..S.:.«4y.. 

Ko 

AA 

.ir.U-<V. 

LA                             •                                                                     t' 

Xft 

^^0.>A. 

4^ 

DATE 

TO   WHOM    FAlt) 

POB  VHAT  pviirou 

AMOVMT 

U. 



'\V  ^  v^s..*^.. 

Kt  .x.A.c^.ttieL'iii. 

... 



... 

1 





T^Mwr^ito^rarvw^'        

347 


m 

'^^  i" 


OATS                      Tu  WHOM  PAID  (CaM'4) 

rot  VHAT  PUBTOn 

AMotnrr 

i„ 

' 

_^ .   . 

^^  ■'^■"'     1 

DATC                    TO  WHOM  ownra 

fOR  WHAT  rvuva                amocnt 

1 



, 

■»—■ 

"■^  '•'  ••  <^  )  !izr:*...'  I  »"ii  ■"  iK.  v-  * ^    d,t  «f  '-'-.wwys*  -t  ■       .  A.  D.  iM  w 

lW<  tte  r»f9c»i>(  >•  •  Ir^  •■.!  ..-..^i^i,  Ananisl  <tai.-n.«M  of  i^rr,  J  diabunwBMI  I  ky  l5»»^^-^>*.»^-"~< 
-•w  -kkkl  AU.  VAaULu^  WA^^MI,  C  iL^ror  ^oUur*!  purvovi  (or  tlw  r<fio4  Mdinc  mi  tiM  3  ^ 
<•»  »*  -— »wA*-v*-:L*.r_)  ,  IM  t  .  I««llwr  .iih  thr  •  ^ •  — 


•ry  fwr^On  to  Or  frotti  wboM  MMk 
o«  wMrk  Mrk  «ai  laa*!  or  roratro*.  ' 


f  h       dl»lfUr«#mrnU  ^  Hi  ■■)   smowol  or 
*     •iklicoUnaa     I 


na^rnooo  ■•«  •••m  !•»  ■>*Ti>«>   ni*  into       I  •  aoy  ^^  ^^  #•  -    /  ■■/.-  -     ---1 

J^^k*.-*^    ^vJ-«*vvJUCr. -'ro.A**«i.a^."VVV..i0...1i,:!h-. 

M*«Tr   P«Mlr  VWll^i.>«.|   V^<  «_  CoMy  St?"    I   •'     -^Vrt-A^W-fc^    ^  " 

«aM'    la  Ika  aorni  tUrr  ar.  i.,  fi.rir<>    4i>l~Faamat<ui  «r  .MicalKMa  tkl*  fM»  riKwM  k*  •( 

Uta  Waak  aii4  aA4a-H  .lari^W   i«  |N>   aaaal   ma«»r     IKl*  (1|   <•» 

•  TW  aariMarT  tt  a   |iaf^.«al  >a«<^«i<  ..-..«. .11^  alMniM  a-.l  .iwul--  >aWa>lt  o#  kU  raiijlill 


tteftacaf 


348 


ELECTIOiN  FLNANCIAL  STATEMENT 


Ililwaakee   County  UcCari&T    for   S<Dat or  Club 

Ma*  it  liiii^j  •(  OH«fc*i^  Oi— IWii  m  Gtaki '.'ftthan    T  .     Hal  It 

srATnfsrr  ^t  w^mtt  natni,  dM«in<  o^  ta  ito  iii ti   Joaa^Th   R.    JcCart.nj 

iMllili  tm  \  'SUSS'  [  to  iW  ^m  if II.     3.     SHnalnr .  ^i,  ^^^^utjli  mn. 

tkftat  .t  tk*  ]  Iteta  I  t>  te  Imm  «  tt» LLil ^  if .'.ovmbBr a.  a  im-S. 

■■*  ill— M  to  BmlM  UM  <f  dn  Wlmmti  Immh. 


DAT! 

roa  VHAT  rrnLrou           j      amount 

.3/i/.4fe *— .,««-.,-,-^ 

M. .  ;i  at .  lajs.t . .  c  1  ?ox.l. . .  . 

•.£Q2Q 

..AS 

!       ihRTA    hAVft    nftAn 

...jafl..cftaeA^/.ta..aiac.e.. 

5j9,i^.    S.  i246.    tfl.e 

1 

;iA\9  p(  ^^T.  Jlas.V.... 

report, 

-            .m^nmA 



DATE 

TO  WBOM  PAID 

FOB  WHAT  PUV«a 

AMOUNT 

i/a/.4£ 

.&s..tJBr..lasx..ca,iOj'.t. .. 

•.i020. 

A3 

iJi^rB  tiivfl   5ft*m  "f* 

4wi5jOkirs.eafiuta  autkcj 

I 

Sepieiib^r    J^  i.ft4j&* 

(A9  uat9  .ojC.Qur. 



^flst  rwoxA^ 

' 

"•" 

"  "•'-" "•■ 

•— ** 



■— "" 



■" 

1                           

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iMH  oOmM  rH«w4> — 

-— ••- 



349 


i 
^ 


lUTB 

TO  WBOU  PAID  (C<at-4) 

roa  VBAT  iu>W>t 

AMomr 

l»imir  «M  (Vratikt  l<m>« 

* _. 

DATE 

TO  WUOU  OWING 

rOR  WHAT  PURPOSE 

AMotnrr 

i........». 

• 

- 

aSM 

•TATB  or  wuoomiN 

OMBIy«f . 


P-SSmII  for  Ik* 


}- 


IH  -Alaaa   Jwi-.^AlInr-  b«tac  *Ur  nran.  u  Mtk  MV*  Hi*  kt  h 

I  .f  -IoL3«jia..a...i»£viar.tax-  *»  .■iL..a._i»aa.tflr..... 

imm  •■  Ik*  ....LJdO...  ter  o<  ....^flVlfeab^r a.  ix  iMjfi..  mt 


ikM  tk>  f«nc<i«  h  .  ti«  ul  em»i(M  taucUl  •Ut«M«^  mry  {  dMxinJSMM  >  k}   J.:il»AU.k*«- 


.CDJlxiU-:iflC.3J:A]UL^CJdlflAt.2.rf«rA«L 


'S^^k^mM  tiiOac  <a  <k^...2LkiL 


T* !i,;i^"^^^^\  ■ '**-^  *^'^'  -<*  U-  "«  <"  "«7  P«»»  to  •  IM.  •!»-  mk 


*■**"*-'  — ' 1  tT  tTtm  mmtt^     ?,l  tih  <i 


( If  _jiiiiRa.a.l{^fl,...fj.££Oiisia 


Om  hUmk  im4  «a4a«1(  u>r«t«4  K  Ik*  wmI  iw 


I  AT  akltiMiMa  ttU*  fart  iko«Ul  b*  (laud  *»«■•  tk*  hca  of 

UM  (9)  (•). 

*  ''*•  —"<*'rr  tt  •  ^raowl  MMpatgB  vauilaa*  dwoM  sM  «»oii>  aftdtvlt  o/  hi*  oudi^u-i  paraoaal  Rataavrt. 


I 


350 


I  I.I  (.HON   MSWLIAL  S1A1L.ML.\I 

NUM  •f  ClndbUU,  FVrK>n^  CMK^alo  n  rvty-Cmmmt%U».  m  Ch*:   .. 

.lilwA-XM  .CflX-tT..Lc£JXjLSj.lQr.  iar.nor  Clnb         

Sam*  af  SwrrUry  of  CmMsM.  ConaalttM  or  C«k: .at'.*-.     *  mW^r 

STATKMF.NT  of  >iT<o<inu  rvnIrHl.  dukyiw^.  Mc.  la  tkt  IhUtbU  ml  .  .ZaKt&U.Ht     I^CCIlTLOX 

\   IIWIIllH««Wt  t  .  «   . 

cudutalt  for  j     .|M'i,.,n     I  I-' iw  .^>«  irf         /        J       ^•Titt*'*        ..  <•  tin  .    :i«r-L''^CAn.. .. 

tKkrl  •!  thr  "|"5""!J[  (    I',  br  Still  M  llM  ...^U: ^  ^j  at  .  J^lUikbdr A.  Dl  IM.A. 

mad*  punuanC  t"  Section  1109  s(  t>i<  Wi>r«fMiR  8Utgtaa. 


DATE  .       1 

ntOM  WHq^  RKCCJVCD 

re*  WHAT  tVWOU                       AMOONT 

.*&.;iar  lii£.r«pi}rt..ar... 

i.jwO<;0. 

«5 

-a/V^ 

_ 

.I94&,.  t^^.ajU.*..or..oux. 

1 

DAT! 

TO  WHOM  PAID                   1                 fOa  WHAT  PVHTOaE 

AMOONT 

AS..  {;<u:.  .Ult  .rapor.t..ar... 

UJiQi.Z'.. 

.ii 

aaptdjuar  .i,..X94S 

.&/i/.4S 

rijporJt«L           

■""■ 



A 



.L"^'!/<fcii»A'l""^ 





.  ..  yf^ 1-, 





::;-'V%&:: 





...... 

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„„,. 



— —  • 

.•*... 



— 

351 


i 

:     i 

1 

1 

u 

> 

» 
1 

<^'   «. 

il 

1  1    o 


tuts                       TO  WHOM  PiUD  (C««'« 

f<M  w>AT  rciroa 

4M0Virr 

--—..--.. ....--.. 

• 

■j.^  fct,i„i 

DATS 

TOWBOMOWOra 

roB  WHAT  nntroK                 amodnt 

1. .  .„. 

Ttmnwtm 

_^„ 

•TATI  or  WnOO!fStN 


'_!> 


-ti>tM>&-*.-  &»tl»P-  MiW  *dt  nnrm.  •■  oadi  ••;•  tktf  W  li 


W     TnMMph    »       ■■/.<■•« -♦■Ky 


.  tor  ■■J^-&..  a»n»toi' — 


-  4*7  <f  —  Vowjuhwr- 


.  A.  D.  tM.j5.,  •■< 


I  Mm  1114  napM*  SMKlal  •teU>i«M  if  ctwt  <  tfikmijMM  i  kr      I' i  l-TUkf't 
T^ija'tlV'^^n^fi^''^ ■-.  IMfi.,  »i«»tli.r  with  th«  »»iBt<rfr«ry  peiwiBloor  fwm  wkuBfB 

^kw  vHk  Um  t«>l  tfnouai  of  Mrk   '  tfilMraiiri^ti  J  la  taj 
l^iiittid  •■<  nan  M  k^m  a*  «*'-    J^Ptl     .*« 

rf JLiXJUMJu: A.  D.  m.jB-. 

>««t«rT  PaMk kllt«ul(«r 


•m  kla*  mW  iflMarn  trntntU  !•  llM 
•  TW  MriManr  af  ■  piiiu««l  e>iap*ifi> 


oMI«*tloM  tkta  (k<1  ikovM  k*  MaM  wiMi  At  tec*  < 
JtO»  (!)   (t). 
«M  Ml  (racvu  aa^rU  •«  kto  < 


352 

Exhibit  No.  140 


353 


■  OTSk    «m.«TOIi    BDILBiao        •        •rrLBTOB.    ■■■. 


3».-t.  .-,  10  ■le 


.   '••'•Xo-*    •^r'   ■'•-*.   ^I'^rtiT  ^t   t''--'»-t   o-    '■">  r""  rt  ;-  for  o'».'Ut- 
t-ir   "lu'h.     ■>"  -*11  r.ot*.»?«>  f"  t   Ir)   -:jT:-in;  fo: — rf*  t-"    j  ciir.t 
,r      ..>.,„.. ,„,„^,  <._^„   |j,j„  .  j.„.^„^^^  ...,  .s't^t-r.  r.t,  ■»  >:;t^  'i;;*6 
t"  •  '"l-u—    ,1''»I^8.5C.      TM-j   1-  no*,   t,*M«   tot  .1   s~oTv.  O!    our  -vlir- 

'""?"*       •      Tt     ♦"    "-it|    <^o:      i  ■•     i»     •■■^»    "Or.  '"CtT-     ♦Otul.    •-'t'.'-*-    ;•^^U    ^'TC 

"".      1-  — vr  T^tfr   p*"  .u-j-niTt   S,   ■■—'    -*...♦?<?  »^  .t  ■•  9  rxr>  «     It- 
•aV»  ?f   ir.,'>.T'.75  V"  '•■'xir~  +.3  u''''   f?"   totrJ.   o<"  t:-.e   iu-t  «'i.-r'!r. 
"r--,      ^'tor  "olrs-j  oyr  our  fi  ^are*?  -  r'-ilX"'  -e  f'.rr   *"    ■■    *    ';• 

••••re     •.--'••''•''     •■-     ni-     n\-{r.J.l      -'--'-y     ♦"♦1, 

■■" — T'-',    •-  -  '      r-^   f---    -'•   -rt,    :  •'.'•»   -"v-.X   'till 

'•'-ri'o.i    -yr-r--   ,  -  -   -  oaa  -.•--».  ♦•-«    — •  ,-r-   +.^*:   i    •  -eviousl;-  re- 

rort'^i*  *n    «l',^:tiK,.'>^   '.--t^  .rf   o*-     l','.-"/,,?.':.      :-  o  .r' .-r^rio-tsr'^- 


't-  3t»r,   -t-rr:s 


'  u        "  roi,i.c 


/J4^/i^^^^^^*^-^ 


J  pud  Iv  br  M<£i«l>,  (Of  Smuo  CU>  U.  P  Van  Vanr>a.SK'r.  Apfteoik  Via 


354 


ELECTION  FINANCIAL  SIATEMEOT^    \y 

ntw^wi I  m  Oi^     uA •**</.  J: ik**iL^utii'*Jkt^y, 


Nan*  cf  S«f«Ury  n*  CMd 
STAT»:)IE.Vr  •(  MMtntt  I 

_  \    MMTMBAtiua  1 


nU>M  WHOM  RKCSrVKD 


Xylols 
I    A*r><w»A'<^A;.' 

I  fLttr}*^  /wrv.-'4^ 

l^Wv-/-^^"^    *  

^Sl.1^ 


•l^i^ 


;uw. 


.^;.^ 


fOB  wsAT  ruwcai 


1X>  WHOM  PAID 


'r 

J  ... 

;.« 

:#^ 

..'/.. 

** 

•■*  '»- 

■;?.:^/i^M.  ^ 

..«Jf.' *•'-".*  4.-.  <J».«n*/f     ,  •- 

il>  ^  ^'^  ■'*  ^' «  ^»«f»^.'*'  * 

A/y/-  .      /:.':. 

.-•.wVS.v.,-^...  ;^.... 

V^,.  -H*^  f'.'^.-y..'*..:. 

A/l?M  f-^<*. 

_.>r.,,    ..i/*^': 

J..:  •    f  ..■iff.':"    ■-'■     ■ 

^.tf.-   I.    "5'»v/'^^.J*w       ■■•• 

^-^.#  Aoj/tt»**  J     ,       — 

7.^.,  M/S«.  Am-^O.    .  . 
M^*  <    *■**"   • 

/a^.-.*4    ^  ^^^^  

l^t^lKA   AwXV  ^  

PfdtvM.*< t,  it      "  

Uj/.i^M^'  •  


fOK  WHAT  rvmroMt 


.....A^;vrt#»r!. 
...Ji**^^»'»"f -• 

^iivt^. ........  

..       ..W'.'^ ; 

...Ai^.X.t^.-il^tf 

y^Utt^^-VM-l^wt*^. 

>>v...V.:f.;:...-...v 

.  .j0>H.'.y'y*f  •^•.  r^^ 

ji^fi*t.  yi<*.*-.A».i.._, 

■  ^  ^f- ••'"• 

.'*^tA ...-..-^., 

9A— r*!. . .-.- ••••••a.., 

Uyy.-.t. ;, «♦....•-. 

mM^iitif'ti.iw'd.. ..-w. 

/i»"</'-.;-' 


y.y. 


J12. 

^--'^•■^.*^ftt-.{? 4" '^~ 


vrWk 

..'..Ut^U^w     -<^. 

'^  4^t^^. '.->/... 

-  h^'i 


.1. 


^A^-*«A\^ 


<,^':'^ 


/v^ 


Jl^ir 

/ 

M^. 


/J 


If* 


355 


ELtC i lOiS  FINANCIAL  STATEMENT 

mmiit*».  or  Chib;  ./^ 


Nam*  of  C«ndi4«l».  IVraonal  rampKici  or  I'utj-CamallMr.  or  Oab; 


■^/Cl 


\M^J^ 


.<?i-^ 


y 


.Vwn*  uf  5«cfMar>'  ■(  CuAMx*.  CaaalttM  ar  Oak: 

STATI.HtVr  or  amounu  raoiTtd.  dlsburaa^  ate.  la -Ika  inUnM  <d  .A.A'-.AC'  L/L4*W»'.., 

rai>4i<l%u  f*  J  "'yi— '!*„""  [  lo  tlM  oAn  of  jtljt^_,Mdt.l-#r^.'... w  th*  . .  V'^'^^  Af.f  •~ 

l-k,.  ..  a»    I  V""?  '    ,.,  b,  h,!d  «■  tk.  ./i.7^-_ d.,  of  ....^8*:'^!***^. A.  D.  I»4_fe 

mad*  pvrauaat  l.>  5wTlion  ItOS  of  thr  W.acansin  Statvtaa. 


OATS 


niOM  WHOM  RECEIVKD 


fOB  WHAT  FVRPOU: 


AMOUNT 


.r.v:ri<^..it»Av^>.H. 


,..f7.?..-/ 


.....^. 


S.>^v.i- 


<.Uk  f- 


'.cl./A 


;._...iA.-/,..y^..... 
.k....\:.'.>}.A.  •iM<v..*  .. 


.^x 


M^.;:^^  :     :::: 

..*<|7/w>i*«/<./^    

?.*^  i*>5i.u^^  


1^- 

i^^. -fM^Zmd. 

..i.:/(Aj.x 

.^'<^VJ_. 

.A^-./»f<xyf 


;.a 


m>^*>' 

fmifi'Mt^t..... 


...*/  r.^W,.,./'  _      


^ft«j{L- 


/<> 

Vr**. 

u 

Ji 

.../^-* 

i» 

?.;? 

J^n 

^?! 

/ 
€6 


ASXHJZ 


*i' 


;:i<^: 


356 


2 

mm     r*1 

>  o 


Si 


y 


OATS 

■?..;. 
7f 


T<>  «HOU  I'AID    Could) 


rOR  WHAT  PURfOSC 


Ai^— wt  p«id  iBrau|bl  Iwvwd) i   

I  .i.rr*';Vr?r^.^v..v |  ....f^_tlXii. 

..fJfjC\,..:*::-i7>. K-.ft.'.-.vT^ 


.iIji.^-.<.v<.*i.C;i..jrtji:.v.«<... 


41 


DATK 

TO  WHOM  OWING 

roR  »-HAT  n  Kroac 

AMoorr 





i 



Ttmomm     J 

STATE  OF  WIHTOVSIN 
Cotinl;  of       *  ;^4^f-     -    .. 


VIM  *^f  nronL  •«  •■0>  •■T«  IkM  W  !• 


ToUd  f»r  Bl  tlw- 

ttet  the  forrgwas  »  - 

.u>  ..f      ._<'.. 


hfU  m  llM  .*.J *»T  of 

and  ranvpMr  niwarial  MatrofM  cf  r* 


; 


dtsh<ir«#vf>< 


tohl 
8utarr<tod 


tvt  yoUlir*]  purpoMv  tot  tW  p»n«4  »«Aii|  c 

.  IM  L  .  tc«»ll<»'  -'►  !•>■    "•»»  "f  r»»'>  r"»o"  «•« 

,|„  .prr.V  purp-v  f"r  ahirk  aild  tKr  4>U  oa  wMrk  Mrk  «<•  Ma 


.  A.  D    IM   ^..r 


V  .<v/'■- 


rmn<  •ham  •urh 
»  or  i^cotTod.  to- 


1  thr  IMol  •f-onl  -r  •••  ►•    '  d..kur~-mn>t.      i«  M>  oi-^H  or  ■■«»>»  wWuoiTtf. , 
..^  .-on.  I..  brfn„  .^  th..      ^     ^         ^> ^•'^t'iU.jL'.^n^.r-w.faUV 


Ci^L/fM.^' 


'r^- 


Mat*.  Otmrnjiu*  vr  C)< 


>■«#       In  lK«  *\*'nl  th*wv  ..r  .-     r" 

lJi»  bUnk  and  »(M«.it   -«<>r-ul»d  .n  lk» 
>  T>>o  »*<r^af>   of  a  prrwna) 


r^^lM.    *.h.rarm~U  -r  .«w»"—  «»>"  «art  ihovM  bo  rtaUd 
'   maaarr    I'O*  (^l   (•> 

ll>o  okoaM  >ot  rtr^t'ir  aAdxit  of  hll  r>iidulat''>  p> 


a  t)M  faro  of 


357 


ELLCllUN  MNAiNClAL  syvltMKNl 

Nun*  •/  Cwididau.  I>r».i«»l  C>inp*ifn  o»  I'sTty-Commillrr.  or  Club:    "'\'-4^'/*-^     tU-\  .^^*^'-t*-\j   '~*'*'irr- 

,  or  a«bi  Mi^(^dkiiJ.^i'^.i^^y^.-r-r 


I  a/  <an«ury  tl  CaadMtW.  Coiamitte*  < 


STATtMKVr  of  «m<Kurt»  ranivnl.  diiburiMl.  Mr.,  in  U^  intcmli  of  .^'.(L./v.^S'Jhl.^^^i.  . 


emMUMr  for  j    '.j^^Z  [  to  th«  otlW*  of  .^..iJ...jLj.~Jt:Vt>...\. 
br  Keld  on  the  ..12J^.  .  dmy  of  . 

pumaM  t'l  brclion  IZ-O}  of  the  Wiacoiuin  SUtntM. 


4^^^  A 


DATE 


ntOM  WHOM  RKCBIVBD 


won  WHAT  PVRFOBB 


■  u    «l^l■"^^^^:^. 


J„ a^r. ^.J^y..k+'  —    ftj... 

>X ■.i}:9'.:p.^/i:A.^.... 

.  i-x  ...  l.-jj..')tu^  .uk^ 

.4f . ; '.A*i.,t.'/A.t^-.^ 

j  ?_«r/.<V.'*<.U 

/' .|j!yCy.«(.;'i««<«<«v.... 

.^ ..'.<ir>»^.'.  .  •U.».>»nv#.  ., 

.-J.k.lfJL  .'K 

I I r«H.'.-j.  ..■..■.  Uit^.-M 

"fA'.^x,/!^  /\»  •«  . 


/■^Vft^f^.l 


/^ 


TotH  raeaivid. 


TO  WHOM  PAID 


rOR  WHAT  PURPOSE 


-a. 


^> 


f 

H 

..I.. 
'. I. 


Itmrmnl  pfvrVMaly  rvpurtad 
i.i*%:,t.Ji''.  •.••:*    .    .. 


..AJm/  (^' 


'../■//^^/^v. 


....■t.<-fc«>i,»r» 


..'.J...  .iA.'-.f.r*-,-,,  

ihj.:.v...<i..... 

♦.r*«»«iv*«»»-.«»»ftt.'..«^.»  ."• .-.. 

iUtfjek'tffil  ,yM  ^jf. 

/tLjUj 


...'.■i...|a..'>w 

i 


h^'-fiU,    

.VN;v.- 

..t*...-..fv»>P.U 

..fA•.^;.*..M^ 

.4;.'.J?f.-y«H«)U 

.'*.('/.•<•/;•  14  .4.. 

ii*;.M/.^.Vl...*l.' 


^ 


.'Jm.^., 


Cam 


..ii;Cl.v#»Jh-.. 


..J.vt9*X%L-^.. 

.  JU-yJLfJiitut 

...((*Vf^*J... 

...<Sl*««?5-aiw.. 

..<^.V(^f&vt>.j>... 


.AA>.k.i 


AMOUNT 


I //>«    •• 

..../.'V..irT!^ 

i .."r*'^.!:^. 

i veV.lT.f. 

I .A-.'.Lfr.. 

YyltC' 


"^*ft::i 


...r(. 
I.e.. 


,.c 


ti> 


...^yjw  .»*«  

...J*2^/^cy^w.    ,. 

..'-.ViMVf  .•*/C'.v.«»»*/^ 

...Aeif.tf{^.: 

...4.y^.-i^.;.^ 

..jJ»'l^.v.'.:(:i'.f.u«4**MJj:. ...... 

uJ^'*^.fi.. .'■■.■  

■  /— ^-v 

..../r-^-j, 

..,4^/fC<i:i««..   ;'VT. 

..4^U:: .' 

.:.Xt^.'.^.<*.U, 


n 


»r 


/^^ 


u'.. 


>' 


358 


y 


\ 
.1 


>  2 


Kw  wmAT  rvnom 


i. 

!... 

/.'.. 

-f- 


2h.'H::'..\f^f..,'t:fM.\.\M.it..... 

vlf<>*M(^5.?.',^^. 

.^^M^^t>jL.Ji:ijf./x. ^.. 

'*\<.ftnft-r.v..:jrr::iv{ j. 

r^tUy...ji.xt.,. 

..V.*.'.t..i..i*.j«Jt-.*^^«.#<i... 

>.f.f..^.\-^J...t*t.^ , 

^!ut./AMt/. ,.....,...., 


^^nfr#«j ...^^.,^ 


MnMl<.^ .^.^..>.i.,  .-^..ffS., . 


jJl/dJjL... 

..^f^.'^^ - 

.,»fi>»«<*Aj»«»<A.?.^J^jU  J« 


'53" 


/J 
/». 

J.-ViT 


D4TS 

"•*   - 

TOWHOMOWDfO 

- 

roa  vmAT  rwoM 

AMOUMT 

!,...._... 

■   . . 

T 

. 

•-• 

• •• 

•7: :■■::::  ■:::::::":::::::: 

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.... 

•  tI...l...~..p..^U...A>..'«.,».f  «»»#... 

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tM«*-«. -....^.-.. 

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KTATK  or  wmrONBlR 


;y — ) 

I  Nr  at  tW 


.^<„.*>^5tj.. ;.'.*«.-<    -OT 


1      M«nii«>  wm  ri>fl   ■<      1 


I  »i».»W  af  Mrk 


i}ta  Mr 


C^Z^.'-' -T&r  as*  I  -  -4^^«<^"  -  ^^'■■, 

tt*  MaZ  m4  lAte^H  >«nM4  i«  tk*  —J mit.  n 


I  MiMliy  rf  *  pMMMl  1— »«l>ll 


359 


wtATOuan  w 


m  CM:  A/^Hd^/..^^2^'ir^^P^^U^cwTT:...- 

■I    mill  wmatmA.  aitiiiit.  ate.  1^ Ik*  intofvu  tt  ^J.Jx..!jl>:.^^^^Mkti 


raOM  WHOM  RCCUVBO 


:J:: 

...U... 

.U... 
-{■■ 


t.f.JCw     

^.^.J-^.'.Jv-.^ 

\Mjf!j!ff^ 

/l:^X,^i..'J&A.ii.... 


fCm  WHAT  rVBK)« 


'i»f.'£ijit. 


♦ 


360 


(i) 


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n. 


f.'.w'.y  iff.  /!.  Af.  X  AXI*-. . . 

Av'-.'**'^^ ^  •- 

isJ..*.,^.^^ 


f-^y^ 

jiL&M\fhi..: 


....Ajt-Lht,. 


...f.flt. 


XTATK  OK  WlnC^pSWIN  \ 

Co»..,  of  y^^««MW*f     _> 

I.' 


{'i  ^,?r-^^ 


■Ml)-!  ''[""•"''  (     h-M  ...  th.     /j'  '^         «.,  .f  *  "^--^^ 


Wu«  d«ll  ivoni.  •*  MlA  Mr*  UMt  k*  ll 

...^  ,:<Xir-^ -- 


tkai  th*  ror««MM  i«  •  iMt»  and  runtplrir  AnanrtAl 


IM  Cb.  lagvtWr  wnli  lK»  iwtfw  'if  v'rrjr  prrasn  lo  or  frgm  vkoMi  ^mA 


_       lit  sitf   ■/'i^wrft  Of  wyini   wli«lfWT>r 

/  (r.«ii4lteu  or  OMlmaii  <rf  Clak) 

A     n    l»«V 


r  O 


r":"As.:f^-^ 


Sf^M-^^  ^('- 


'  TW  wrtvta/y  a*  •  ptrmumai  ta'wM'l 


.|pu    clu>>urwm«i4«  nr  i>Wir*tiMia  1M>  (art  ritMM  ka  «<U4  i 
IM   iwual   m^AMr     i;i»   (^1    (•) 


361 


lUll    1  lilJLllUlJLL,   JUL 


Mc^art>^  for  3^r.-tor  Glut 


Ifrhan  ?.  Van  fluntnrm 


flTATBONT  rf  .Mite  mmi^  ■ I.  .n,  k  ^i-*— f^  gcCoTthy  for  Senator 

•>*i*  i*  *•   }  JiS  (   l»  W  k*M  •■  ik> mii 4qp  <( £tJ^USt ^  a  IMjfi^ 


ito  liiMn  IIM  Wlk*  ' 


.i 


l*OM  WHOM  RBCHTID 


FOB  WRATnmrou: 


a- .  ax: 


A.-"'"-'*-    -r»ric-i3l;'  rT'>3"ted 

,l^, "^10*60 

D»«e 

Vir, 

2 

:.T"^li""-''  -t-to    >1.   ':'^-.     c^n^ral  use 

,60C0,C0 

A-*,:. 

6 

- 

6y90,00 

A'»5, 

21 

■  r''  -r   ..    /'I  oU'tfier.                            loan 

-.5(i.v.O 

A'i--;. 

J:0 

H                                                                                     « 

o.  .9-; 

Au~. 

r-- 

N                                                                                                « 

65,or, 

V'", 

.73 

""rroiT'   Tot  ftl 

5", 00 

;io,rf./-:,94 

»■  ft,  770.  44 

362 


■'-•*  ■** 


A"0'.\;-.t   — •.•<on"l;- 


^  ipit^'tS»iti 


\x'..    1 


A'«^,  5 

All  :*  6 

Am?.  7 

A>iT.  8 

A.T.  9 


~'?r  ■;al'l 


■J^anclf   A,     >rn"r 

I-r-Tloi   Prtr.    "e. 
?"*.»r»<»n  Prens 

riiT<!  t'or-.-l-' 

■•l.-Oi    ■•  C'ltl't 

:•  rl«  -o>r-".ey 

A"~loton  '-e!»'t-"i°t»r 
••'•"^.   L,  K»atlnj 
V--i'tnn  -cc truster 

T,jo-r-'  .'olln 

A-ri"*-'!  :>o-*»-T=»»' 

A  7l"t?r   -o't-'otT 

."or*."— "   ♦.  S-rr,    "o, 
A-r-l^tnn  '>o«t"-«>«t»r 

VI re  1  "la  Van"lrV'<;-3»n 
"'.  1-'\'>V«»   pontr.<\'5t^r 
<»-  pl-ton   foatra-oter 
A^T-l'ton  x'0't''-^'tT 

.';i  I'luk^e   70 'tr  later 
Ar>rl'"ton  pontrf.stor 
A  ^letor;   70Tt-a"t»r 

"rVar   '/"r  "oof 
"Ml-viV«»   '~ofltr^''ter 
A-'t'l-ton  ^■**'-^nt'r 
?rtlT'»ii)c*e   ^ct'-a.-'tT 

"ash 

Arri'**""  ro"*'"^''*-"!" 

Arrl--*<'n  ro" *■*•'*-'' t'?r 
Apnl<»ton  po't'-^'t^r 


?or  fhtot   J>ir:70«e 


rl^o,    "•!V3»n      :    -▼•■<•-. ^s 

1   0.00 

r»r.*   'ri"   •Ttr*  roon 

.v.oo 

•"l»n,   -'•;t«<»  •-.  jNo''tac4 

c.^.OO 

-■'.«r,  r-;;»«   or' 7f5t»;>rd9 

^C.CK 

ro»*ac« 

<-.  r.,ifi 

lor^  o\itar.e«  "•  -•.-'OLir 

i"rYl<>« 

100.71 

rrirMnz 

no 00.00 

•fl 

•  V;,00 

• 

ICOO.OC 

T«l<ir.,    -^"C*" 

t>0.00 

•■0.^-9 

^.^  .tX) 

r    jea 

!>.^ 

•^  >_;•« 

I!.,b0 

••\:-» 

ir.io 

""T-jea 

5.60 

-Rjea 

h.50 

-o-t«ce 

r.15.45 

•iv^ia 

:-.H0 

-  ♦  '•jrpa 

>1.50 

r.<3-.    — ;;i    •.    -o*t;-    cASh 

IN".  00 

»->rr"r'»»   on  70  •♦.<*■  rrts 

••.«5 

•♦a.'-'-a 

r.i.ro 

r>o-=t->.5e 

/.'I.  30 

-a-T^a 

.•x.oo 

—• •C'^a 

;7.00 

7lat-8 

■•.■)u.01 

JO" t ace 

ri:  .10 

-!lse,   T-a:;»8  /    r^tt;-  ea.r\ 

100.00 

"'-'"9 

c:  .00 

.-ont(«c« 

ca3,80 

^o"'t^^« 

70-7.73 

?f'-79 

^oo.oo 

r^l'c.  --ca  <■":   ;  etty  ca3>i 

100. uo 

7ost'.:9 

'.;  ^.oO 

't-wpa 

700.00 

7o-!t.a.e 

503. 00 

rlfxr,   w  .r;..^        r''tt;'   f*>>> 

100,00 

■-  :•• 

oO.OO 

^O'tSjT* 

39H.97 

••o''*a';e 

AT/). 66 

_^o™t"« 

■"^,00 

"Itf.   ■-'>-'"'  :■    -At*;'  oaa'i 

100.00 

>-onii«   *o   Trploywea 

i;:s.oo 

.-^o-'ta.j^ 

Cro.89 

ro-ta/ja 

75.0a 

ro'tv* 

56.26 

ro"tac9                                     _ 

Mfl3 

Jll,37ft.l» 


363 


i.x::r4f  ■"  -  rrv:*  2 

/ 

r....-t,^ 

forr  .rd 

ni 

,37ft. 19 

^4y2aa.5£ 

•    t" 

■«,-v 

?or  Wiat  piirnoue 

IBh 

Aro'int 

.Vi  -.    9 

"•i«»»,  »-n(Te«  .fr  r'**y  '^ 

\--l»to?i  T'o-'-'v^t^r 

n  t  ■'r';:<« 

."01,20 

A   -I'ton    no-^t— «nt"r 

- 1  •>.'-^9 

.•,6.33 

'■'.  lT»  ■'n-n'ly 

TH-'oi 

2^.00 

'■'-",  ::irl^  "o'T'fwiV 

w-vr^o 

1;  .SO 

■">-o\  •••-'itl-t 

-"•.'•»« 

••ae 

.>•-"  ->'?*""'■» eV 

•7;  ■;^'^n 

lilft 

••--.     ■  .rolrt  "Vmt 

■•Ttttr;  ^rjrts 

3S^.,«o„,)   j,>t-,    ^n. 

rrlntlr« 

2i>7,S» 

^ 

■'•IV*"    3" 'I   "o. 

^Icrri    in  ;.<^~lr» 

as. 

.^m 

A      .    10 

.■\r"l*tpn   ro    t.r-'""'t''r 

r,o -ituje 

J^ 

.\7-l->ton   T"   t-.\«t»r 

rc-taj« 

8««#--^ 

.^Z 

'ort»»w^«t   "-le,    'o. 

Dlre-tory                        • 

•»« 

.^Hr 

■  "-In;-  rolftVl*" 

>?-w8r  r*"-"  ■■'d* 

Si5«<0 

^gW 

''rV-in  7->n  "oof 

Ta:** 

ao.oo 

•'-.lt»'l   T^l-.    '70, 

<Jlrf  rtoTy 

.63 

^^^^^B^ 

A-'l"*on  rostr''^tT 

-o'tnjre 

'f,SI& 

^^■^ 

A-;^l»ton   "0<«tr-«i»t»r 

r'0'"tr.:e 

*s.«e  y 

'^^ 

'-r'T',»T»  ''offyRn 

TTac*" 

*?.otf  /. 

^P 

'•• ' -Tn-iV^.^  Tlrps 

printing 

»3.6»       ^ 

^ 

T^»l-a  roM^e-' 

rr,v;ri        oTcrtiPie 

PO.M  -' 

?i»-.h 

nine.   ":':r'*fl    "■   :>*>tt  •   rash 

50.00   • 

--^ 

"rv<>ri  X.    ■'■••.n  S'irt»r»n 

r«^r."rfnt   i^  ""^tty  cash 

artTP-nfl«d 

28.00 

.Vi?.    \z 

Vlrrl-l-K  V*n"lwb'TrBen 

vT-vse* 

29,60 

"•■ntriO.   D^llT<;ry  oprr. 

(>llT«r7  crrviee 

214,60 

Au/J.    15 

TiO"  '•■•ii»'-ln 

•va.^es 

50,00 

">Tt.»r   C^ntnT 

Tragse 

76.00 

"•'••-nn  V--n<5'»r   3eet»n 

^'XS^a 

bO.OO 

-ti"    :o-!Hlion 

T\.joB  :.  exp»naeB 

266.00 

rt\-    ;o~inion 

...,.'»-  tp  '  iBtrlbuting 
lltTature       poTters 

107,00 

Arna  S^lin 

^■■-Zin  v30u,a0,   hotelB 
food  v^^7,o0,      »tl<^nge 
;137,00,   phone  cUla 

;37.b0 

iirand  Total 

661,50     . 

«14, 490.92 

528,779,44 

364 


.          

' 

9X3i..WiiTSX7..A.... 



Trt«  ii^ni 

DAT! 

TO  WBOM  FAID 

poa  WHAT  mroKM 

kMOVwr 

535?  .Tr:.I?.T.T.B 

"^ 

1 



i 

::;::;::;:::;;:; :::::::::::: 

i 

L 

r 

"~ "■■ 

•■""**        "■ 

365 


1 

i 

1 

I 

1 

' 

>• 
p 

I 

"  .       m  r 

5  ■  ;  s* 


I 


>  o 


^ 

w 

^ 


-^TSi — 

TO  W»>M  FAIO  (Cof  4) 

foB  wsAT  nnvwa 

Auxin 

( 





'Via' Amaa* 

atn 

TO  WHOM  owmo 

rOB  WHAT  FUBTOSB 

AMOOMT 

-  Aus...2t.. 

.'.c:'.lf/::'.?.v..?An?.?..i!:.tsi...';c 

faa.riaoi:.A5:li«..!;.Qii 

:r:TacxljBi.i?3rt«-..?.<?A 

f. 27int^.ing. 

».....jS£fi 

,00 

:.?* ! 

..„l*PA 

1061 
.?3b. 

op... 

flM.  Own« 

"ijw'es 

*so 

ttATB  or  wBOomni       ^ 

-  rf   Cuta.7-rle  f* 

'r*--Ti   ?i    Ynn   'iii-t'rnnw<  _ 


tSSSSl  te  «•  I    •'■^""1  •<  ■■-•'oser*!  :^.  "oCarthy       j„       X\   3.    Senator 


Mo^  if  miT  l^^^r*}  ^    l^cCajTthy  for 

«f  aviiT  »■>«■  t>  cr  ItaB  «iMB  aib 
^x***  »»'»'■■  '«  «W<k  aX  tk*  4Mi  «  «Mdk  *«*  «aa  ai*  «r  aaaiaiA  <•- 


i 


366 


'  I'  1  II    I  lU  ^    I  I  V  \  M.I  M     S  I  A  I  IMI   V  1 

Nun*  or  •^'tK».m.yw»mxar%mmaAiMWtmtTmMwmtrt  cu,),.  MoO*xxiiy  for  S«BKt»t 

.Club     

Nun*  or  svnur>  «r  quDBUZUWIr  a«k; — Qtbwt  £^  K*o  8u»t«»aa 

STATKMES-r  of  »n.<Hintt  r»c«l>««i.  diltnirwil.  nc.  I«  tk*  inUraMl  of .°.^.^        *        °*'*^*"''       .... 

<-.»d.<ute  for  )  "Tw""r""  | '"  '•-  »«"  "'   .. .U. . .?. ^_Seni|t Or  ....  „  u»        RepubllOM  . 

0.».t  .1  it.^    I   ;i^,t;;  (    t..  I-  KWd  on  t^ P-}^  4.,  o* WOTMber  A    D    ,M..ft. 

m»4(  ^noanl  li.  S«cl>oi>  110$  of  Ihf  WiirOMln  SUIviU*. 

DAT*  1  nWll  WHOM  RECUVBD        J^  fO«  WBAT  rURTOU AMOOWT 


MOOARTHT  FOR  BIRATOR  OLOB 
EXHIBIT  A 


8«pt.    14 

T.   0'l.«*ry 

general  uae                 $49.90 

Oot.   4 

Rep,   9tat«  Vol. 

Co«.            ' 

1000.00 

•      10 

R.  Jobnaoa 

600.00 

R«p.   8t*t«   Tol. 

Gam.            ' 

1000.00 

Albert  0«hl 

10.00 

Cul   B.    Oahl 

10.00 

A.   L.  HarrlM 

'                              10.00 

A.   1.    0«hl 

'                            10.00 

K.    L.   0«hl 

'                              15.00 

J.    W.    0«hl 

•                              30.00 

Reuben  1.    T^en* 

'                              49.50 

^.    A.    Reiee 

'                              60.00 

Walter  J.    Tollr 

atb 

•                              86.00 

1.   R.    Salth 

■                               46.00 

•      18 

Ray  Klermae  -  loan 

•                  aooo.oo 

■      34 

Rep.   State  Vol. 

Ooa. 

'                  aooo.oo 

•6794.00 

367 


•    - 

•m^t 





8m  Att«ob«4  IJCHIBIT  A 





DAT! 

TO  WHOM   fklD 

rOR  WHAT  PURPOUS 

AMOOMT 

Wit,   Telephone  Co,..., 
R.   J.   VerstsKen  Tran 

3ept,    2! 

t«;eia)9.n«..MrTift».. 

285 

..OQ. 

Oct^  4 

, frel^fcht 

.<iXr.iBtOXi.9M 

.3 

,09.. 

....?  .....f  . 

.Wrljiht  PuWXuhlnc  CO. 
Petty  cash 

.Ml 

•        4 

■1.8cel.\W«0M.«. 

.M 

,19. 

•  4 

•  5 

Jtay  (Jlimore        

r.«fi<Ur»«n.t .  .9.t.  .l.i?». . . 

polling. Ii«.t    .. 

279 

a 

« 

M 

10 

,00 

6 

Mary  Bevooqua 

?«.•*•«• 

ipn\*?,..oX..<fhMx»..... 

.\elRi)J)9M  .»*ry.lflft.. 

I ftdrcrtltlng 

,00 

'       9 

«■.   Stolt 

•  09 

•     11 
•....15... 

...■>•.?    Telephone  .Co^_ 

,0Q 

...V..X5. 

■orth  Star  Pub,   Qq^ 

AlXftC.t.ariM. 

.  .  93 

,SQ 

•      22 

Vra,   Ceo,  Holtkneoht 

o.o».\r.w.t..tyj?lnK 

^ 

.9Q 

•      26 

Blj>lpjr«M 

«««r. 

.«U 

..fli. 

- 

~- 

...tUiC 

.fi9 

368 


fe     I 


H    Z 


OAT«                         Ttl  »  HOM  FAID  iCoBid) 

fOR  WHAT  PURP08* 

AMOUNT 

1 

TM.I  *a...li 

rrjR  WHATPiRPoeK 

OATK 

TO  WHO U  OWING 

AMOUNT 

Oct      12 

Rrlntlni;       

I...1429. 

|0Q 

OlreolozJlcui          

VP 

30 

Oct.  .2. 

JWpBT 

oO? 

06 





....?.Q98 

36 

__^ 

«TAT»:  Of  1HW<»SI.N 


Ikal  tK«  r<>f«coiii«  !•  •  <ni<-  aii'l  '"niirltr  r.««i>ri«l  nu.nt.m^ 


.^     Urban  P.    Van  3u«te|yj„  ^j,  ,w,m.  «■  cik  «t«  •>-<  "«• 

Jon«i>h  R.   McOaxUiy  for        U.  3^. Sena t*.. 

6th     ^,  „,  H-weaber  a  n  im 


,    '  4<a>H>nM«ral 

KcCaXthl  'or  senator   Club      r<>r  »""<•'*' »«n»v«  for  ok>  i«no<j  •■xHui  m  tk. 


6... 
6th 


4.r  "f 

g*1h«r  with  tiM 
.H«kvrik^  u«l 


Octob«r 


I  6  ,  u^ltor   •!••>  I*"  ■>*"»  »'  r^'rr  t^nsB  U  or  fmn  wkom  Mrk 
>  fnr  >tii'k  ••>!  Ikr  <tat»  oa  wttirk  aark  «••  mmAm  or  rmro).  !• 


.„..     .(   .,k       .li,<.Mr~m.r.U  ^    . 
I.      »4^ 


^5^^^^%- 


/        (O 


UuadxUM.  r«mailM*  (r  Oak)* 

/Wi    d 


•  Tk*  ».r«..)    »/  •  »»r— i 


369 


II  n    I  HIV   \\\  \\{  \  M    m  Al  IM.I  \  ! 

Sun,  <•!  iimmtut  rTw.i»x%mwmmiJiwm-»MSX»mmm»jmxi-\uhi     McCaxtny  for  Senator   Club 


rK^UM.  di>huraRl,  ru..  in  tki  .nl^mu  nf      JaS&Sb.R^    MoCArthj 

j  I ..  thr  .rfv.  ,.f     .U>   S,..3en«t<T         .  «„  o,.         Re 'iM lean 

I.,  hi  h.-iii  on  Uw 5th  •!«>  "'   -      Sivenber  a.  n.  im   6. 

I!"-J  ur  Ihr  U'KvMwin  StatulM. 


fKOM  WHOM  RKCUVBn 


.Oct.      26  4m.>u«l  l«».v>l»l/  rr|.>fMd    

•     •      31  »«?p.    Hat.   Vol.    Co*     • 

,.  JQV.  i  JBep.   'itate  Vol.   3qbu 

"        1  Otto   Zank 

•  '    •'"  L.     f.    Beebe 
...  .« — ^.  ■tiig.,ry  P-ytiflt 

•-.      7  -Jb,.  H.    2:jehlke 

.....?....  7  F..E.   T.iyiQX.     

"        7  Lewlp   Parka 
•■•■••■•    T  TOO,   St«e  Vol, 
■■  ..  a  Jxaik  T.    Fxay. 

•  9  Aucrust   K.    Paenchke 
-- •••      ij,  •■,;     ^      Lemke 

•  11  Wiv  Klemwi   "     


roK  WHAT  puRPoee 


AMOUNT 


<t;ner^  uae 


nnm. 


.fi7.9i, 

.200Q, 
10 

5 

-   -ss 

....25 

2f 

..  .49 

49 

■     49 


00 

88 

QO 
00 

jOO 

joo 

00 

m 

00 

^^"^ 

.50. 
,50 
.50" 

jeo 


Total  r«a<«<d. 


ii  22  54, 47 


D*TI 

TO  MUOy   PAU> 

FOR  WHAT  PlRPOaE 

AMOUNT 

Oct.    26 

eooj 

99 

..? 3^. 

PQHtijaster 

...?.tJM>9« 

00 

•      aa 

Ozaukee   Pub.    C04 

directory 

7 

50 

30 

.    Hotel    A-joleton 

rent 

130 

00 

...MUl.r.X... 

"an  Hooy  Prtfc...Co, 
Peter   Honlok 

printings 

1429 

70 

•      1 

distribution  of   ooater 

B          25 

00 

•      1 

." i .. 

Apple ton  Poat   Crescen 
Mlrlweat   Pub.    Co. 

t  a(Jverti«ln<^ 
director  lea 

'35 

92 
'00 

.....". 1.. 

...■X3tii.t  .HrOB. 

.Bt^jfV  jstock 

.596. 

.  .     ST 

fff} 

...  • 1 . 

. . . Jc Jir.?  -jn  Pub .  .Co. 

...ilUrBc.t.oElieR 

fiO 

.....•- 1. 

...H^xth  star  P«b...  ao,.... 

■ 

9j 

00 

....'.......1.. 

...llaitti««8.t  tnKT....Cio^.. 

.  ..31  eraent .  .■».uel  la 

...H'>r';h.reet  Tel,    Cfl 

Con»inlty   Tel  .Co, 

OoiMonwealth   Tel.   Co. 

platen 

17 

94 

...'. J... 

..  .•. 1.. 

..8.1?n". 

..riUcuatociflft 

4. 

...  Si 

.50.. 
2!> 

.• >... 

■ 
i •■'" 

6 
12 

00 
BO' 

•        4 

.Jo  4iaon   Pub.    Co. 

Illscanaia  Tel.  Co 

BtaployeeB 

.Ray  Klermu 

■ 

8 

50 

V       4 

....tel.ei>Uon«..nM.Tl.ciJ 

88 

86 

...v.     7. 
...'. .7. 

....QpntrafiS.w'jr^ 

repayment  of  loan 

1074 

abbo 

21 

^00 

•         7 

Ray   Kiermaa 

75Q 

1.00 

.........?Q... 

»•.  atoit. 

chair  rental 

22 

tOn 

...:...9Q.. 

.    Central    DQl^vexj 

hauling 

1 

55 

.......2.Q.. 

...?A.«?.on«»Xn  Tel.   Oo, 

telej^ne  aenrlca 

26 

,69 

112.254, 

.47 

i 


I 


370 


*  •  f    !    « 

•  "■     ■     o 

^  .  i 


i    ^ 


1    fi 


Tl'  mHUM  PAID  iCcst'4) 


roK  VBAT  ruKnn 


DAT* 

TO  WHOM  OWINO                                   fOR  WHAT  PVRPOSI 

AMOUNT 

I. 

» 

• 

TMllOallt 

^^ 

STATE  OK  »1SrO\SIN  ) 

r.,..,  .f   Out ajjiuilf  _ i  "■ 


hnx  Mj  twMm.  M  oatA  OF*  Out  te  !• 


I      •UrtH.ft      I 


'  .f  Joatph  Ja^.McAt.toJ..-  .f« a...3^.3matar. 


»"|       h«ld  on  Um      ..5tb 4»r  rf 


D.  1M.6...  *■« 


l>  Mrntarr* 

««ts4  for  >l  Oo 

lAat  lh>  rar«oli«  tt  •  <ru»  uxl  ra<iipM>  Kauri«l  MaumtM  <<  r^n    ^  *dJiT»jij««  ^    kr    — ji      ♦' 

...McilmXU^j  tax.&anAai.01)t>-  «•»  m««»«i  f«r>cM  ri  uil  litiw  mttmt  <m  ik* 

^,j  ^  "'"'•■'^.' 1»4-    ..  taa«IWr  -It*  U»  iMjnof  nxrr  p*nM  «•  m  fro*  •»<»  OTc* 

'  dJZ^^ISJjr  ;^^  j  .  U-  .»«lfc  r..»o«  f«  -*icA  «-  IW  *^  -  -Wk  . 


I  m  BUBOT  »Wai 


(MKrr  w<U  tAa  lo««l  anwxuK  af  lack       *■>■■"■■«—«»  ,■  i»  Mj 

-  -I'-'T^J,    ...■■■■■ - 


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>  ^fc  11  If  *■•-        '"-■■'-  I  ■■  miiMl 


371 
Exhibit  No.  141 

1ttt%iUb  ^iAi«*  «£«iu»l« 

SHKCiAL  (O.MMITTKK  TO  INVESTIGATE  SENATORIAL  CAMPAIGN 
EXPENDITURES.  1»46 

In  connection  with  ncintn:::!r.2 
i-KIMAKY   i:i,B(TIONS,  CArCtSKH,  OK  lO.W  ENTIONS 

Qufnlloiuiairc 

The  rulluwiny  gueation*  are  to  be  anBHrml  by  every  candidate  fur  the  office  of  Senator  nf  the  United 
Siatea  at  any  Primary  F^lection  or  at  any  Nominating  Caucuii  ur  N«iMinatinK  Cimvention  in  every  Slate  of 
the  I'nited  Siatea  during  the  year  I94<. 

The  retjueitcd  information  ia  required  in  connection  with  Si'iiuti-  IleM>lution  ^21.  79th  Congmta,  2<t 
S<-wion,  Kebniary  f>,  1946.  / 

1.  Name  of  State  in  which  you  are  a  candidate  Jl.i/r^^^^.^T^-4tt^\\^ 

CoiitribatiaM 

2.  Have  you  received  from  any  lource  any  contribution,  gift,  service,  or  anyUiing  elae  of  value  to 
nomination  at  a  candidate  for  election  to  the  Senate  of  the  United  State*  from 


luaiat  your  candidacy  fui 
theSUteof  ^V '^ 


'♦-rf-C^vi^  i-tw- vw    in  the  Primary  Klivtioii,  raiicui.  or  Convention  during  the 
r  ]94«? 

Yw .  K: No 

If  your  aniwrr  la  "Yea."  pleaae  apecify  in  detail  below : 


Ji't>-<^  <  //  ^o 


TOTAI.  //.    ^O 


372 


3.   Ha*  my  person,  with  your  kiio«  U-dgi-  oi  toiijent.  received  «ny  coiitiibution.  gift.  »ervirc.  or  »ny- 
thinf  elM  of  value,  in  behalf  of  j^ur  candiHaiy  for  nomination  for  ilection  to  the  Senate  of  the  I'nil.-.l 

SUtes  from  the  SUte  of     /  //..<,-U<^<rt«-<L-.^x^         ,n  th.-  Primary,  Caucu».  or  Convention  of  1946' 

Yea  No 

If  your  anawer  it  "Yea"  pleaae  »pe<-ify  in  dcUil  below  : 


In  Re:  Questlona  3  and  4; 

The  WlBconeln  State  Republican  organltatl->n  and  Tarlouf 
McCarthy  For  Senator  Conralttees  did,  I  understand,  fpend  money  and 
perforiB  acts  for  the  promotion  of  my  candidacy.   As  to  the  araounti 
spent,  contributions  made,  etc.  I  presently  have  no  knowled^^e  ex- 
cept from  hearsay  and  rumor. 

I  exercised  no  supervision  or  control  over  the  Republican 
State  Voluntary  Committee  nor  over  the  various  McCarthy  For  Senator 
Clubs,  etc. 

Under  the  laws  of  Wisconsin  each  Individual  or  committee 
that  spent  ovpr  fifty  dollars  In  the  promotion  of  the  candidacy  of 
anyone  must  file  a  complete  verified  financial  statement  with  the 
Secretary  of  State  of  Wisconsin.   I  don't  believe  that  I  am  entitled 
to  obtain  a  copy  of  such  statements.   I  assume,  however,  that  If 
your  committee  would  write  the  Secretary  of  State  he  would  be  glad 
to  send  you  a  verified  copy  of  statements  filed  by  any  committee  or 
club  which  was  working  for  my  nomination. 


vention  of  19-16,  without  receiving  in  payment  or  compenaation  fur  iuch  aervicea  or  facililiea  the  fair  and 
r«Monable  value  thereof? 

Yaa  No 

If  your  anawi'r  la  "Yea."  please  fully  deacriU-  the  acrviiea  rrndnwl  and  the  facililiea  made  available. 
Mt  forth  the  payment  or  compenjiation  actually  made  therefor.  aUte  the  fair  and  reaaonahle  value  thereof, 
•nd  explain  the  baait  upon  which  luch  fair  and  reaaunable  value  waa  computed. 


373 


In  Re;  Queation  No.  S: 


TO  WOU  PAID.  ADDRESS,  and  PURPOBl 


U.S.  Postofflce,  Appleton,  Wis.  — Poetag* 

V.r.W.  Publication,  Milwaukee,  Wlaoontln  ->- 
Advertising 

rieoher  Letter  Senrloe,  Appleton,  Wla.  — 
Uultlgraphlng 

VanHooy  Prtg.  Co.,  Appleton,  Wle.  — 
Printing  and  Paper 

VanRooy  Prtg.  Co. ,  Appleton,  Wis.  — 
Envelopes  and  Pfer 

Anonson-Oomoll  Co.,  Oshkoah,  Wis.  — 
Uultlgraphlng 

Sohroeder  Hotel,  Ullwaukee,  Wis.  — 
Room  and  Phone 

Sohroeder  Hotel,  Ullwaukee,  Wis.  — 
Room  and  Phone 


Date 

Amount 

4/2/46 

$  90.00 

6/28/46 

160.00 

7/2/46 

9.10 

4/16/46 

47.50 

5/16/46 

47.50 

4/18/46 

32.00 

8/6/46 

58.20 

7/29/46 

35.00 

Ulsoellaneoue  Items  of  less  than  five 
dollars  each,  spent  since  becoming  a 
oandldate,  such  as  telephone  oalls, 
hotel  lodging,  gasoline,  oil,  etc. 


430.45 


The  above  Is  a  statement  of  my  expenditures  as  filed  with  the 
Secretary  of  State  of  Wisconsin  for  the  period  up  to  the  Tuesday 
before  the  Primary  (Aug.  6,  1946)  pursuant  to  Wisconsin  Statutes. 

The  following  list  of  expenditures  covers  that  period  from 
August  6,  1946,  to  and  through  the  olose  of  my  campaign: 


To  various  filling  station  operators 
for  gasoline,  oil,  etc.  (No  one  Item 
over  five  dollars) 

Sohroeder  Hotel,  Milwaukee,  Wis.  — 
Room,  telephone,  etc. 


8/6/46 

to 
8/12/46 


8/11/46 


Owing  to  Wisconsin  Telephone  Company  (To  be  paid  when 

billed) 


18.00 
57.  CO 
14.00 


Total 


998.76 


374 


Exprndllum 

6.  What  expenditure*  or  di«bur«ement*  have  yoii  marti'  in  behalf  o1  your  candidacy  for  nomination 
for  election  to  the  United  SUt«  Senate? 


Total 

6.  Have  you  made  any  promise  or  pledgt  relative  to  the  appointment  or  recommendation  for  appoint- 
ment of  any  person  to  any  public  or  private  poaition  or  employment  for  the  purpose  of  procurinic  aupport 
in  your  candidacy  for  nomination  for  election  to  the  United  State*  Senate?  ,     . 

Ye.  ..     No  U<. 

If  your  answer  i*  "Yea,"  pleaae  specify  below : 

Name  of  person  to  whom  promiaewaa  given 

Addrea*  of  person  to  whom  promise  was  given  _ 

Description  of  poaition  or  employment  promised 

7.  Hm  any  penon,  with  your  knowledge  or  consent,  nruide  any  promise  or  pledgr  relaUve  to  tht 
appointment  or  recommendation  for  appointment  of  any  person  to  any  public  or  private  position  or 
employment  for  the  p»irpo*e  of  procuring  aupport  in  your  candidacy  for  nomination  for  election  to  the 
United  SUte*  Senate? 


No 


375 


If  your  answrr  u  "Ye*,"  picaac  ipecify  below : 
Nunc  of  pcraun  making  promiae,  and  addrcaa 


I 


D«acription  uf  pi«ition  or  employment  promlied 


H.  Have  you  uaed  any  public  fund*  or  political  patronage  in  behalf  of  your  candidac>-  for  nomination 
for  riortioii  to  the  United  Statea  Senate?  , 

Yea No   t^r 

ir  your  aniwer  ii  "Ye*. "  pleaae  »pecify  amount  and  »ource  of  fund*  and  nature  of  patronage 

9.  Have  any  public  fund*  or  political  patronage,  with  your  knowledge  or  consent,  been  u»ed  by  other* 
in  behalf  of  your  candidacy  for  nomination  for  election  to  the  United  States  Senate? 

Yes  No 

If  your  anawer  ia  "Yea,"  pleaae  specify  amount  and  aource  of  funds  and  nature  of  patronage 


10.  Have  any  funda  appropriated  by  Congreas  been  spent,  with  your  knowledge  or  conaent,  in  your 
l>ehalf  as  a  candidaU  for  nomination  for  election  to  the  United  SUtes  Senate? 

Yes  No      ^■'^ 

If  your  anawer  is  "Yea,"  pleaae  specify  in  detail  below : 


...U 


' '"  ^  '"*"  '™°*  "*  •"'  apeclflc  instance  in  which  any  person  receiving  compensation  from  the  Fed- 
eral Coremment  has  been  intimidated  or  coerced,  or  in  which  any  aUempt  haa  been  made  to  intimidate 
or  cnorce  »uch  perK)n  in  any  manner  designed  to  sffiTt  the  reeult  of  any  Primary.  Cauciu.  or  Convention, 
in  behalf  of  your  candidacy  for  nomination  for  election  to  the  United  States  SenaU? 

Yea - No    L^ . 


376 


If  your  answer  la  "\n,"  pl<>ii»e  iprcify  in  d*t«il  below 


Stati  or 


d 


L 


{ 


X.y 


^ 


.vr*«-C^a»-  -U<-  N'V. 


lii^T'C^^flLZiC^  J^ 


^py^n:^^ 


J-C  f^T^    "^  . /y /,  ^     ^— ^.''t-'Cti^being  duly  »worn.  d<-poa««  (afflrmi)  »rnl  tayi 
that  the  foregofiig  moiwers  to  questions  herein  contsinefftre  true^iyl  corre^  )  -O 


7.   'A^tP^^ 


7 ( 

.  ATT.  1946.  ' 


Subscribed  uid  sworn  to  (affirmed)  before  i^e  this    ^  C      ^day  of 

AJ*^-    Cl^i'xofClrouit   Court     jLWUHtiiocat 
/         Outagamie   County,    Wleooneln. 
My  commission  expires  .  19 


J:;^*<  -cy^y 


In  order  that  it  may  ob«?y  the  maiidatf  triven  to  it  liy  the  Senate,  this  Comniitti-*-  « ill  ntnve  and  con- 
ilder  any  charge  that  may  be  filed  with  it.  under  oath,  to  the  effect  that  the  funds  appropriated  by  the 
Conp-eas  have  been  or  are  being  used  to  intimidate  or  coerce  any  voti-s  cast  or  to  be  cast  in  the  senatorial 
campaigns  of  1916.  or  any  charge  coming  within  the  *ioi>e  of  this  Committee's  iuri«<lictioii  and  authority 
as  fixed  by  Senate  Resolution  221.  .Seventy-ninth  Congress,  copy  of  which  accom|ianies  this  qu.-«tioiin»ire 


\ 


•5 
t5 


377 
Exhibit  No.  142 

4  4 


5  "-- 


378 


m 


379 


^ 


380 


381 
Exhibit  No.  146 


\\' 


»^  IK  19*7 


Mr.  Hay  Klenw* 

o/o  Stutor  J.H.  MoCarthy's  Offle* 
Stoat*  Offio*  Building 
Vnthiogtoo,    0.   C.  ' 

Oaar  l^jri 

In  aooordano*  with  ay  telaphona  oonveraatlon  of  thia 
■orniog  with  jou  and  Joe  HoCarthjr,  I  aa  encloalng  herain  not* 
for  (10,000.  together  with  lavlngt  withdrawal  for  your  sigoatura. 
When  retumlai:  tha  oota  and  iaTlngt  withdrawal  properly  aignad 
together  vlth  your  laTlngf  pata  book,  kindly  send  ue  a  letter 
authorlilng  us  to  ar-iy  the  HO, 000.  on  the  Joe  McCarthy  notaa* 

At  the  present  tine  Joa'e  notes  total  $53,093.35.  After 
you  authorize  the  payaent  of  $1C,000.  the  notes  will  be  reduoad 
to  3U3,093.35,  At  the  oloee  of  laet  night's  market  Joe's  oollataral 
wae  worth  the  followlngi 


800  ab  C.  M.  &  St.  P. 
«?11,000.  Cent,  of  Oa.  5iB  of  59 
400  sh  Stan.  Oas  A  Sleo.  k%   pfd. 
•3,000.  Cent.  ofOa.  5s  of  ^^ 

'1 


at 


[7,000.  Cent  of  Oa.  ^ia   of  59 


510,000.  Cent,  of  Oa.  5e  of  59 


50  sh  Heola  Mining 
IOC    - 


LOO  sh  Burroughs 
:?00  sh  C.  M.  I  dt.  p. 
SO  sb  Ueneral  rioanoa 
S5,000.  aortgaga 

Velua 

Loan  (aftr»r  JlO.OOO. 

Mr.rgin  {lG%) 

l^lth  kind  regards,  I  aa 


8i 

t6, 600.00 

10- 3A 

22,682.00 

?2 

8,800.00 

1^8 

1, 1*1*0. 00 

10- 3  A 

75?. 00 

10 

1,000.00 

11» 

575.00 

1,306.00 

w 

1,650.00 

7      , 

350.00 

5^000^00 

p«t.) 


43.093.00 


Yours  »ery  tnily 


MA^tH 

Speoial:  Air  Mail 


President 


382 


383 


384 


385 
Exhibit  No.  150 


1 


386 

Exhibit  No.  151 


387 

Exhibit  No.  152 


THIS   DEPOSIT  ACCEPTED  BY  •" 

uf  SaoliitujitiiH.  9.  i£. 

MAIN    OFFICE 

SUtJUrr  TO  CONDITIONS  AS  PRINTCO  ON  THE 

REVERSE  SIDE  OF  THIS  TICKET 

FOR  THE  CREDIT   , 


PLCASt   SEE  THAT  AIL   CHCfJ%  AND  DRAFTS  APE   ENDORSEQ 
STATE   KAHE  OF  BANK  OK  COf*»ANV  ON  WHICH   ITtMS  AH  F  DRA^J* 


':2:^y&lj^ 


ITEMS.  (rnteiClerk^SrijIvr 


■5t^i*«^, 


3y/^  - 


i 


388 

ExniniT  No.  153 


Hoa.  ttUU«  Bmtoa. 

SanaU  0<flM  Bttlldlac.  to.  3S4. 
teahlactoa  S.  B.  C. 


THE  Rices  NATIONAL  BANK  OF  WASHINGTON.  D.  C. 


389 


Hod.  flllUi  Banton. 

S«nat«  Offlca  Baildlne.  Rb.  354, 
tmthingtoa  25.  O.  C.   . 


LEDGER  B 


tfJII 

2»37    . 

2.00 
42U>0 

252.07 

21  ^« 

'iiS 

277.12 

MOM 

140.00 

1*4  40 

184.85 

litM 

t9M 

5M 

iAO 

15.90 

25U>0 

28.29 

54.24 

200.00 

44.75 

36.00 

1730 
30i>« 

5.00 
65.10 

4834 

2637 

74.21 

25.00 

.  23.67 

4.00  , 

•  58.90 

59.7t 

7.00 

35  9.44 

918J7 
9.39 

2«37 

2.09036  1         50JMZ3 

2.594.19* 

XJMti 

2. 579.1 9« 

iOJMlt 

2.50839* 

50M  27 

2. 45  9.96  • 

50JMl» 

h:h\%\ 

iOJM  79 

50  JUN  30 

2.082.53* 

50  M.     J 

1.-799.41  • 

1        50  JUL     5 

1.509.11* 

■     ?git     1 

1.409.1  !• 
1.394,81» 

iO  JUL  10 

1.209.96* 

50U.  U 

94831* 

50M.1f 

91839* 

iOJOLZI 

912.48* 

• 

50M.  74 

906.08* 

50  XL  25 

865.78* 

50  JU.  74 

..     837.49  • 

50M.  76 

783.25  » 

2.000.00 

50  JUL  76 

2.58  3.25* 

50JIL  77 

2.50230* 

50  JUL  78 

2.377,00* 

50  JU-  3t 

2.281  .84* 

50M,      t 

2.233.30* 

>0  4U&      / 

2.20  6.73* 

50  Ai)G     S 

2.132.52* 

•>nt,^K  10 

2.  107.52* 

.'OAui;  10 

2.C3  3.85* 

50  *IC  /  1 

1.894.38* 

"-.O  SA  ?  ^ 

t. 780.07* 

•OAiti^M 

\,A?-0.b?>* 

jOaug  ;5 

502.26* 

!       SOMC  17 
-- —                  JOOMC  t« 

492.91* 

THE  RlGGS  NATIONAL  BANK  OF  WASHINGTON.  D.  C 


390 


391 


lei  ?9nton, 
tnjtoT  25,  t.  C. 


LlfDGIP   H 


9.90  S0J8 


50  NOV  ^o 

50  NO*  ?? 
50  NW  ?< 

50  Nu/  JC 

•"0  Ni//  i  0 


3.it10.?ft-»- 
a.  90C.63* 


3.«65.17» 
3.565.17* 
2,757.62» 
Z.7Z^.6Z* 
2.  71  8.62  • 


5/rtH      ? 

SM'ri  5 
5 '  .  r.i  '; 
S/rtB     J 

il-.LO    ?} 

5/  'to  ?6 
S/'t-B  ?< 

>/  KB  ?7 

Sim  It 

5/fEB  2« 


2.020.2O* 
2.80  1  .ftO« 
2,.'->7  3.-70» 
2.86  4.70* 

2.82  1  qo* 
2.71  3.15* 

2.  26  0. on* 

2.  176.56* 

2.  10  4.56* 

1.893.61* 

1.773.42* 


The  Riggs  National  Bank  of  Washington.  D  C 


392 


Hob.  tlllUs  BaatoB, 

S«aat«  OffiM  Bnlldtnc,  Ra.  354. 
■aahlDctoa  2S.  D.  C. 


LEUCr-R  A 


t2kQ»«o 


51.00 
75j07 


Sim   t 

U77S.42*  8 

SI  tun    I 
Sim   s 
Sim  u 

Sl<ltt(  tt 

1,C7937« 
I.29937* 
1,225.02* 
1.110.80* 

5/ mm;/ 

1.064.56* 

5/ MM  27 

l.0443«* 

simn 

1, 580.06* 

Sim  if 

1.350.06* 

Slim  it 

I.06636* 

sitn    s 

SI  U*     4 

Sim   4 

SI  WK    5 

sf'i^fo' 

1.009.08* 

r5ii^: 

85331* 

SI  un'tt 

^4  7ir* 

sun  11 

SI  «M<  13 

614.31* 
563.31* 

SI  mil 

48824* 

siimo 

J/N»T      1 
5/  >ttt      4 

47824* 

46824* 
418.24* 

5;  "ttt  n 
>/  "if  fS 

.    340.26* 

S2fi.36» 

2.  01  6. 37 • 

^^  Vif  f 6 

2.  74  2.04* 

.5/NITf7 

2.71  4M« 

The  RIGGS  NATIONAL  BANK  OF  WASHINGTON.  D  C 


393 


Hon.   flUUo  8«aton, 

Canat*  Office  BulMlng,  P.=.  354. 
■AStilii£toa  25.  D.  C. 


LEDGHR  B 


96.90 

604.17 

10.50 
26.43 

50.00 

*Vol 

102X)0 

1ft2.02 

6.40 

2931 

4  2.05 

t4J)0 

200.08 

.wx 

26^ 

249J50 

w^ 

73JB0 

V^' 

8.80 

2  9.33 

40.00 

mi 

100.00 

6.88 

74  93 

C.40 

132.51 
6.50 

121.56 

5.00 

9.03 

20.36 

1.525.77 


53.0t  21-20 


50.00  I  COO 


J/  mn  it 

5/  M«T  25 

2. 550.28  • 
1.746.11  ♦ 

S/MT2ff 
5/  MAT  i9 
5/  JIN     T 

5/  JUN     « 

1.7?5.6  1  ♦ 
1.709.18* 
1.659.18* 
3.  184. 95* 

5/  Xtt  " 
5/  )JH13 
5/  IN  f^ 

3. 12  4.83  ♦ 
3. 120.83* 
3.018.83* 

W   it,14 

J.Cl  ft. 91  * 

51  m  15 

51  IN  15 

2.988.90* 
2.94  6.87  • 

il  m  IB 
51  tm  19 

5/  JUN  25 

5/ JW  If 

2.73  2.79* 
2.646.97* 

-    1.956.71* 
1.878.96* 

51  Mil 

1.805.96* 

5/  JUL     5 

1.746.49* 

il  M.     9 

1.75  7.69* 

51  JJLlt 

1.70  8, 36» 

5/  JUL  ;7 

1.668.36* 

5/  JUL  7y 
5/  JUL?? 

5/  JJL  2^ 
5'  U.  2C 

1.753  28* 
I. 680.45* 
1,65  5.45* 

5/   W,   ?7 

t.  40  7.24* 

5/  -U  ?7 

1.  15.^.17* 

.    5y  ju   ?o 

1.  134  67* 

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4 


McCarthy:  the  Man,  the  Senator,  the  'Ism' 

By  Jack  Anderson  and  Ronald  May  $3.75 


Savs  The  Psciv  York  Post:  "Jack  Anderson  and  Ronald  May  have 
written  the  factual  and  accurate  story  of  McCarthy's  rapid  rise 
from  obscurity  to  notoriety.  The  whole  story  of  his  scandalous 
C4»reer  is  told  here  in  comprehensive,  readable  form.  .  .  .  This  book 
is  a  valuable  restatement  of  the  case  of  the  people  vs.  McCarthy." 

Says  the  Saturday  Review:  "Messrs.  Anderson  and  May  have 
misse<l  nothin<:  of  si<rnificance  in  the  record  of  moral  squalor 
McCarthy  ha.«  left  behind  him  in  Wisconsin  and  in  Washington.  A 
valuable  contribution." 

Says  The  Cleveland  Plain  Dealer:  "An  extremely  significant  book." 

Says  The  Washington  Post:  "A  devastating  piece  of  work.  .  .  . 
Those  who  fancy  themselves  experts  on  McCarthy  are  in  for  a 
surprise.  Anderson  and  May  have  dug  up  much  more  documenta- 
tion on  each  incident  than  was  generally  known  to  exist  .  .  .  this 
is  a  book  that  has  the  big  truths  in  the  form  of  the  relevant 
docuMieutation  attached  to  each  episode  of  McCarthy  and 
McCarthyism." 

Says  The  \eiv  York  Times:  "The  record  is  plain  for  all  to  see, 
and  this  book  will  help  to  make  it  plainer." 

Says  1  he  .\*'jr  York  Herald  Tribune:  Messrs.  Anderson  and  May 
make  no  effort  to  hide  their  belief  that  McC^arthyism  represents  a 
serious  threat  to  American  freedom  and  democracy.  But  their  chief 
concern  is  to  set  forth  the  facts  of  the  McCarthy  record  and  to  let 
those  facts  speak  for  themselves  .  .  .  this  is  an  amazingly  successful 
book  and  just  about  as  valuable  as  any  that  is  likely  to  be  pub- 
lished in  this  era  of  decision." 


Published  by  The  Beacon  Press,  Boston  8